I am concerned about the possibility of a correction occurring in the near future and am thinking of taking some profits. What should I do?

By Intelligent Investor · 22 May 1998

By Intelligent Investor ·
22 May 1998

If you have a long term investment strategy it is often wiser to hold onto your shares unless the fundamental reasons for buying a particular stock have changed. Also, carefully consider the tax implications associated with selling shares as it's no use giving away 30% of your gains to the taxman just to try and sidestep a correction. Yes, there are some pretty strong warning signs of a correction, people have been talking about a correction for 3 years now, but to try and pick the timing is fraught with danger. Only you can make the final decision but your piece of mind should be considered.

IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.

I am concerned about the possibility of a correction occurring in the near future and am thinking of taking some profits. What should I do?

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