Do you have poor performing investments (stocks, mutual funds, index funds, ETFs)? If so, now might be the time to get rid of them.
Recently the Dow broke through 17,000 for the first time. The stock market reached an all time high.
When the markets are high, that is usually a good time to get rid of your loser investments. Loser investments are investments that:
• Have been performing poorly over the years
• Have reduced or eliminated their dividends over the last few years
• Mutual funds with high fees
When the market is high, generally speaking most stocks and mutual funds will also be high. The investments might be trading at prices much higher than what you paid for them. I hate to lose money, so if I can sell a loser investment for more than what I paid for it then it’s a great time to sell that investment.
When the market is high, use that opportunity to sell your loser investments.
Be cautious of buying any new investments right now, remember you want to buy quality stocks when their prices are low (undervalued). There is no harm in waiting for quality stocks to become undervalued. Remain patient, educate yourself on how to invest, and you’ll be ready when the opportunity presents itself.
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