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przemyslaw-radomski

My junior stocks don’t perform well. Should I sell them?

October 15, 2010, 12:00 PM Przemysław Radomski , CFA

I’m interested in the junior ranking. I hold some juniors and they haven’t been performing well recently. What should I do with them? Should I switch to other juniors or should I do something else? I would very much appreciate your answer.

Well, while it might appear surprising - it may not really matter because when stocks start to go down, owning big senior stocks will be much preferable to the ownership of juniors - meaning that one should get out of this sector with most of the holdings. Once things settle down a bit on the general stock market, we would once again focus on providing you with best stocks to buy. So, the big question is always what happens on the general stock market. If we get a confirmation that lower prices are very likely, then we suggest selling juniors. Please keep in mind that our SP Junior Long-term Indicator also provides you with buy/sell signals.

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