When Do You Sell? - Real Time Insight


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Stocks are in the midst of one of the greatest multi-year rallies in the last 75 years.

But 2013 has been the icing on the cake. The S&P 500 is up 16.6% year to date. The Russell 2000, which is the small caps, is up 16.7%.

This rally has lifted all boats. Big winners can be found in every sector. You didn't have to pick the "right" industry to cash in.

For instance, small cap trucking company Saia ( SAIA ), which operates 147 terminals in 34 states, has seen its stock double in 2013 after five years of not doing much at all.

You know it's the mother of all rallies when even the airlines stocks (the airlines!) are up big. Shares of Alaska Air Group ( ALK ), for example, are up 50% this year.

In some of the hotter, "glamour" stocks, the returns have been equally as large. Shares of Lumber Liquidators ( LL ), a Zacks Rank #1 (Strong Buy), have jumped 67% this year after four years of not doing all that much.

Some investors are starting to question this rally based on 5-year charts like that of Lumber Liquidators and Saia, where the stock has really shot up in the past few months after years of "normal" gains. How much longer can this rally go on?

Many investors put stops in place to cash in their gains. Some sell when they have a 20% or 25% winner. But if you did that in this rally, you would have sold a long time ago and missed out on some massive stock moves.

The S&P 500 has hit new highs 9 out of the last 10 sessions but nothing goes up forever.

With many investors sitting on huge gains, the question many are now asking is:

When do you sell?

Or do you?

ALASKA AIR GRP (ALK): Free Stock Analysis Report

LUMBER LIQUIDAT (LL): Free Stock Analysis Report

SAIA INC (SAIA): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Stocks
More Headlines for: ALK , LL , SAIA

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