Don't Be Sentimental About Stocks

0:00You watch year after year as the stock your great-uncle passed on to you falls. The stocks are in a company that still makes rotary phones. The company he found it. How can you tell when it's time to let go of a stock? This is a money minute from in-charge education foundation in militarymoney.com. It's never a good idea to buy or sell investments based on the political policy or headline of the day, but there are good reasons to sell. The psychology of investing is such that it is usually easier to sell stocks that are doing well than those that are performing poorly. However, there are many reasons to sell when an investment is doing badly. It may be too much like your other investments and you wish to rebalance. You may disagree with current priorities or ethics, or there may be better opportunities elsewhere due to changes in the economy or markets. Stocks and mutual funds are investments, not friends, so it's best to avoid being sentimental when making decisions regarding stocks. Keep up with your investments and talk to a qualified financial advisor to help decide if it's time to sell. This money minute is made possible by in-charge debt solutions. Visit us online at www.inscharge.org