It’s been a strong year for many stocks. But now that we’re in December, many investors are looking to diversify and rebalance their portfolios. This is a simple strategy in which you take some profits from your winners and move them to stocks that haven’t done as well in 2024.
Selling stocks at overbought levels doesn’t have to mean your opinion of the company has changed. But as the old saw goes, nobody got broke taking a profit. And if a stock is overvalued, trimming your position can protect you from downside risk.
