Knowing When to Sell

Of course, maybe one or more of your investments isn’t performing up to your standards. This kind of letdown happens to the best of us, and you can count on a disappointment once or twice in your investment life. When underperformance hits home with one of your investments, take a deep breath and try to figure out what’s happening. Figuring out how long to hold on to an investment that isn’t producing any growth is a challenge. You have to first determine what is keeping the investment on the rocks. The following sections offer a look at why an investment may be underperforming.
When you sell a stock, bond, or mutual fund, make sure that you find a suitable replacement and don’t leave the cash lying in your checking account, where it may be pilfered away by life’s daily expenses.