How to know if it’s time to sell shares
Sometimes it’s best to sell slowly; at other times quicker is better. Experts weigh in on how to know when it’s time to sell.
Before China announced a major stimulus package in September, prompting investors to pile into iron ore miners, Commonwealth Bank had been in a “hyper rally”.
Shares in CBA had been trading at record highs – the bank’s share price reached $144.50, taking it to 23.4 times one-year forward earnings per share. Earnings-per-share is one of the most common metrics used to assess whether a stock is overhauled, and 23.4 times is extreme.
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