By Ian WyattNEW YORK (
How much you are up, or down, on any particular position -- and your conviction in the position -- should determine whether you sell some, or all, of your shares on what you don't consider "core" portfolio holdings. My advice would be to sell those positions that are becoming increasingly volatile, and that you don't have much confidence in. These are the positions that you wouldn't want to buy even if they were 10 or 20% lower. Conversely, I would recommend holding onto shares in companies that you really like, and have conviction in holding through some volatility. Perhaps you'll want to sell some shares to lock in recent gains, and try to pick them back up at a lower price. Or you can use the cash you've raised through selling your non-conviction positions and average down as those stocks you want appear "on sale." Occasionally rebalancing your portfolio is a necessary evil and is something you need to do when the market is telling you it's time. Right now, the market's increasing volatility is suggesting that you do so. I wouldn't advise you ignore it.