Have you taken a close look at your portfolio lately?
Doug Kass, Real Money contributor and author of Doug's Daily Diary, wrote about what investors should do to protect their positions.
Curious about what you should be doing? Here's what Kass advises.
"Right now I would be looking at every single investment I have and can and think in these terms. Or at least this is the way I think. Think what the, depending upon your risk appetite and your timeframe, what the upside reward is in each stock versus the downside risk. If the ratio is one to one-or worse--It's an unattractive investment," explained Kass. "Obviously, if the reward is two or three times what you perceive to be the risk, you should stay with that investment. But with many stocks near their all-time highs, I suspect that ratio is deteriorating. So you should start looking at all your investment positions one by one."
Related. Doug's Daily Diary