On Wednesday, the S&P 500 was up 0.4% to another record high closing. And Toronto was up 0.1%.
Notable gainers included Liquor Stores N.A. up 2.7% and Dollarama also up 2.7%, Canadian Western Bank up 2.2%.
After buying on dips over the last year or so, I have no net cash in my portfolio at this time. I’d like to be holding some cash so that I can take advantage of dips. But I am very reluctant to sell stocks that I think are under-valued in order to raise cash. Logically it should be my rating on the stock that drives my decision to sell a stock, or not. But inevitably, it is also always particularly hard to sell a stock that is lower than the price I paid unless something very negative has happened and I have little expectation of the stock rising. That is I would trim a stock with a high rating if it was a large portion of my portfolio and I was in a gain position but it’s hard to trim a buy-rated stock if I happen to be in a loss position. It’s also hard for me to get myself to trim a Strong-Buy rated stock even if I already have a strong gain on it. I always like to show the courage of my convictions in that regard.
Given the recent strong gains in Boston Pizza and given that I am in a gain position on that stock (on top of the strong dividend) that is one stock that I may choose to reduce. I have an order in to sell a very small portion of my holdings if it hits $21.50. That sale will be in an RESP account where I particularly need to raise cash.
Overall, I don’t expect to do much selling until and unless the prices of my larger holdings rise more significantly.