Is It Time to Sell Stocks?

May 26, 2022 Author: Tess Downing, MBA, CFP®, Complete View Financial

After touching record highs in early January, US stocks1 have slumped, and investors have been confronted with worrisome headlines2 in the financial press:

“Inflation Hits Fastest Clip Since ’82”

—Gwynn Guilford, Wall Street Journal, January 13, 2022

“Economists Cut Back Growth Forecasts as Threats Pile Up”

—Harriett Torry and Anthony DeBarros, Wall Street Journal, January 18, 2022

“Giant Stock Swings Send Some Into Bear Territory”

—Gunjan Banerji and Peter Santilli, Wall Street Journal, January 18, 2022

“Markets Drop as Turbulent Trading Persists”

—Gunjan Banerji and Will Horner, Wall Street Journal, January 26, 2022

“Fed Set to Start Increasing Rates by Mid-March”

—Nick Timiraos, Wall Street Journal, January 27, 2022

Invariably, the question behind the question is, “Should I be doing something different in my portfolio?” This is just another version of the market timing question dressed in different clothes. Should I sell stocks and wait for a more favorable outlook to buy them back?