A recurring theme of this column since May has been to make portfolios more defensive. That means reducing equities exposure and adding cash, fixed interest and infrastructure.
To recap, I am not suggesting a market correction is imminent or that investors should dump equities exposure. Rather, that share investors should cautiously take some profits as the market becomes dearer and implement strategies to preserve capital.
Every investor is different. Do your homework or talk to an adviser before tilting portfolio asset allocations. Selling stocks has capital gains tax (CGT) implications and affects income investors who live off their portfolio’s dividend yield.