Spring Clean Up For Your Investment Portfolio

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Spring clean your investment portfolio

. To that end, here are five tips to consider that can help you put some bloom back into your investment portfolio.

Prune your winners. The stock market run-up has been led by some high-flying, aggressive growth stocks. If you own a bunch of them, and they fall out of favor, that can also deliver outsized losses. If you might have some difficulty managing the emotions around a sharp decline, then now could be a smart time to take some profits. You don’t have to exit the position entirely, just trim a portion to reduce the allocation.

Harvest tax losses. Investors usually consider tax-loss selling in the fourth quarter when tax preparation begins to take center stage. But sometimes selling ahead of the crowd can have its advantages. If you hold a stock that is trading at multi-year lows, there is a chance that others are also fatiguing. So beat the fall rush and consider selling now.

 

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