http://profitableinvestingtips.com/bond-investing/when-should-you-sell-an-investment When Should You Sell an Investment? The stock market had a tough time of it at the end of 2018. Despite a partial recovery the tech darlings that led market gains for years have investors worried. If you have ridden the bull market for gains over the last few years, is it time to consider some changes in your investment portfolio? For most investors, the question is whether the market will come back or not this year. But there are a number of reasons to consider getting out. So, when should you sell an investment? Here are some thoughts on the subject. When Should You Sell an Investment? The first question really is why did you invest in the first place? Yes, we invest to have more money. But, is there a specific reason besides simply wanting to have more? Please forgive us for stating the obvious, but here are ten reasons why we invest.

1. By www.ProfitableInvestingTips.com

2. The stock market had a tough time
of it at the end of 2018.

3. Despite a partial recovery the tech
darlings that led market gains for
years have investors worried.

4. If you have ridden the bull market
for gains over the last few years, is
it time to consider some changes in
your investment portfolio?

5. For most investors, the question is
whether the market will come back
or not this year.

6. But there are a number of reasons
to consider getting out.

7. So, when should you sell an
investment?

8. Here are some thoughts on the
subject.

9. When Should You Sell an
Investment?

10. The first question really is why did
you invest in the first place?

11. Yes, we invest to have more money.
But, is there a specific reason
besides simply wanting to have
more?

12. Please forgive us for stating the
obvious, but here are ten reasons
why we invest.

13.  Increase your wealth
 Saving for retirement
 Reach a financial goal
 Take advantage of employer
matching 401(k) program

14.  Increase returns from pre-tax
dollars
 Increase the rate of return on your
money
 Start your own business

15.  Take care of family or contribute
to a charity
 Reduce your taxable income
 Invest in and be part of a new
business venture

16. The point is that when you should
sell an investment will depend in
part on why, and how, you invested
in the first place. Here are a few
examples.

17. No Longer a Good
Investment

18. We have written about Kodak
several times.

19. George Eastman and his company
invented camera film and the
personal camera.

20. They were the leader in the
industry for a hundred years.

21. Then digital cameras were invented
and Kodak’s business plan no
longer worked.

22. When should you sell an
investment when its business plan
is obsolete?

23. The answer is, sell it now. Do not
try to time the market.

24. Get out because the direction of
the investment will be downhill
until the end.

25. There are situations in investing
that are obvious, like Kodak and,
perhaps today, Sears as well.

26. Sears was a pillar of the retail world
for about as long as Kodak
dominated the world of cameras.

27. And, although online shopping has
greatly hurt department stores,
there are still retailers making a
profit.

28. But, Sears is not one of them. When
should you sell an investment that
is not keeping up with its peers?
Again, the answer is, sell it now.

29. Learning to assess intrinsic stock
value is essential for a long term
investor.

30. If your goal in investing is to
increase wealth over the long term,
you need investments that will
reliably generate income over the
years.

31. These investments have intrinsic
value in excess of their current
price.

32. When that is not the case and is not
likely to be the case, over the long
term, it is time to sell.

33. VIX Last Six Months 2018

34. Market Too Volatile for Your
Investment Time Frame

35. If you are investing with the goal of
sending children to college or for
the business you have always
dreamed of, you may not have the
luxury of waiting for each of your
investments to ride out a recession
and a down market.

36. And, like most normal investors,
you may not be all that successful
at timing the market.

37. If the market starts getting volatile,
like it did the last few months,
when should you sell an
investment?

38. The answer is that you should sell
at least part of your investment as
soon as possible on the next up
day in the market.

39. In fact, if you are nearing
retirement, getting close to when
you will need money for college, or
close to what you need to start
your new business, it will be wise
to re-balance your portfolio to
reduce risk from your most volatile
investments.

40. Part of such a portfolio should
contain cash or its equivalents.

41. We have written about how to
invest without losing any money.

42. In that article we note that the
safest investments include US
Treasuries but only if they are held
to maturity.

43. When the markets, interest rates,
and other factors become volatile,
use a ladder of short term bonds or
treasuries to provide safe
investments and ones that will not
be swept up in the market
volatility.

44. A Multipurpose Investment
Portfolio

45. Even if you are putting away money
to send the kids to college, you
are, or should be, saving for
retirement as well.

46. Thus, when you should sell an
investment will depend on the
purpose for which you are
investing each portion of your
portfolio.

47. Additionally, money in
your 401(k) at work or your IRA(s)
should remain there until
retirement or at least as long as
you will not be penalized for early
withdrawal.

48. The mix of investments in a
portfolio is typically more growth
stocks early in the game and more
value stocks and bonds later on.

49. This mix can be modified for each
portfolio segment so that when it
comes time to sell investments and
get ready to use one portion of the
portfolio, the other portions remain
untouched.

50. Coca-Cola

51. When Should You Sell an
Investment before You
Expected to?

52. US News published an article
about when it’s time to sell a stock.

53. Other than cash flow needs, “The
only reason you would sell would
be when the future expectations
are below your target.”

54. Thus, you are routinely
doing fundamental analysis on
your portfolio and the
fundamentals have changed on one
or more of your investments.

55. This should be a routine chore over
the long term.

56. Or, the time has come to cash out
an investment to start paying
college tuition.

57. When should you sell an
investment outside of this time
frame?

58. It is when you cannot make an
intelligent assessment because of
market volatility.

59. It may be the trade war, interest
rates, or social and economic
unrest offshore where you have
foreign direct investments.

60. It does not matter why it happens
but when you cannot make an
informed decision it is time to get
out.

61. This advice follows that of Warren
Buffett who says he throws out 95%
of his potential investments as too
hard to call.

62. Buffett, in fact, held a strong cash
position going into the dot com
crash because he said the market
made no sense!