You're welcome. I'm not a financial planner, but I'd suggest to you that even though ERICY is near its all time high, that doesn't mean it's overpriced or any riskier than most other stocks. This is especially true since 1) the overall market is also at all time high levels and 2) ERICY's advance has been nice and steady, not like a huge jump in a few days that you could decide could go down just as far and as fast.
Many experts would say that buying a stock at its all time high, given the overall market, is a smart thing to do. There's no overhanging shares of owners who are waiting to get back to break-even point that might otherwise slow down the future price increases of the shares.
On the other hand, if you expect to need the money from your ERICY shares in the 5 years or so, the same experts might well say it would be a good idea to sell some (or even all) of your shares now. That locks in your profits and removes the market risk assuming you reinvest the proceeds in cash equivalents or maybe a 3-5 year bond.
Still another consideration has to be taxes. If your marginal tax rate is high right now, then taking the capital gain at this time may not be a good idea - especially if you think your tax rate will be lower at some future date when you might otherwise sell your shares.
Maybe the best test of all is your ability to sleep comfortably at night, given your position and profit levels. If you are becoming really nervous about (temporarily) losing some or all of your profits on ERICY in the near term, it's probably best for you personally to lighten up and sell some shares.
You probably know all of this already, but I just thought I'd offer these additional thoughts that would occur to me if I were in your place! :-) |
