There was a lot of fear leading up to the recent presidential election that a Trump victory would result in a material drop in stocks, but that outcome never occurred. Instead, following President Trump’s victory, and the Republican party assuming control of both houses of Congress, the market has rallied to new record highs.
There is a lot of uncertainty being priced into the market at this time, and the market is priced to perfection in hopes of tax cuts and economic growth under President Trump’s economic agenda.
Whether or not the anticipated economic growth occurs remains to be seen. Trump plans to boost the economy through corporate and individual tax cuts, as well as increasing federal spending on infrastructure to create jobs.
With the overall markets at record highs, it should come as no surprise that many stocks are also now at record or 52-week highs as well. In some cases, these stocks are likely to build on recent gains. Some sectors, such as financials and insurance companies are likely to trend higher as interest rates rise and lead to higher interest income, but some sectors are less certain.
It is never easy to sell stocks while they are trading at their highs, but in some cases it is best to go ahead and lock in some profits and look for better value elsewhere.
The following stocks are currently near their highs, and investors may want to consider selling the position, or at the very least limiting their exposure, and taking some profits off the table before they give back some of their recent gains.