When to sell portfolio stocks
Building a stock portfolio requires considerable experience and knowledge as identifying value stocks is not a simple task. But even difficult is to decide on when to sell stocks in order to maximise returns. When money is invested by carefully picking stocks with long term potential then the need to sell stocks may not arise before the projected investment time frame. But stock market investments are not predictable and slump times in the market can even hamper a blue chip stock portfolio, so investors should keep a close watch on bull and bear trends in the market.
If the economic forecast is negative for a couple of quarters then it makes sense to sell high risk stocks from the portfolio, but one can hold on to defensive stocks in such times as these witness maximum buying in troublesome times. However, one should not sell in a falling market when the longer term outlook is positive.
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