Taking Some Profits and Sticking with Winners

For now, I am continuing to take some profits but selling parts or all of my winning positions. In many cases, the stocks have advanced further, which indicates the bull market is still intact.  We are still maintaining our core positions, and thus are still participating in the gains.

Although I'm tempted to buy some underperforming stocks, I am going to resist.  It seems that underperformers continue to underperform, e.g. GE, Under Armour,  and Oil related stocks.  On the other hand, outperformers tend to continue to outperform, e.g. Amazon, Alphabet, Nvidia and Netflix.

If I take any new positions, I will focus on buying stocks that have been outperforming.   My only variance from this strategy is to increase our positions in certain REITs, which mostly have dropped from their recent 52 week highs.   The REITs offer nice dividend payments, which are great for tax deferred retirement accounts, since REIT dividends are taxed as ordinary income.

Disclosure:  At the time of posting, we owned shares of GE, Under Armour, Amazon, Alphabet and Netflix.

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