Now's Not the Time To Unload Stocks
Lately, readers have been asking whether it's time to sell. No wonder they're worried. From Jan. 12 to March 24, a space of just 12 weeks, the Dow Jones industrial average rose 17 percent. For the year, Pfizer Inc. is up 28 percent; Ford Motor Co., 31 percent; Fidelity Select Telecommunications Fund, 29 percent.</br></br>Why not simply take a breather? You're not greedy. With the market this high, it's bound to fall and you can buy back later, right?</br></br>Wrong. There may be reasons occasionally to sell stocks, but the overvaluation of the stock market -- alleged or actual -- is not one of them. I'll get to the right reasons for selling below, but first a tougher question than whether to sell: whether to buy. . . .</br></br>The date was May 28, 1995. The place was this very column. "With the market up 20 percent in the past 12 months and acting giddy at such a high altitude," we asked if this might not be a good time to wait -- rather than purchase more shares of stock. Our suggestion: Buy.</br></br>At the time the Dow Jones industrial average stood at 4369. Since then, with dividends included, it has returned 112 percent.