There are two main ways to approach selling stocks. The first is top-down analysis: the market or certain sectors look expensive, so profit-taking and portfolio rotation is required. The second is bottom-up analysis: a case-by-base analysis of company valuations.
As I wrote last week, Australian equities have solid prospects in 2018. Do not expect a wild bull market; a low double-digit total return (including dividend yield) is likely as our economy grinds a little faster.
Thus, a modest increase in portfolio exposure to Australia equities is warranted, preferably by taking profits in US or Japanese equities, if held. Fund manager warnings to sell stocks and increase cash, in anticipation of a market slump, are overdone (2019 could be a different story).