Meaning of "reduce" recommendation?

• 9 July 2012

• #1

K

kgoodwin

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Morningstar have a Reduce recommendation on some stocks such as CSL and RHC. If these stocks were in my portfolio, should I sell the whole parcel or only some?

kevin

 

• 9 July 2012

• #2

Gringotts Bank

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RHC stock price has been powering along for over a decade. I'd want to know their reasoning for that rec.

Reduce means reduce your holding. Sell means sell the lot.

 

• 9 July 2012

• #3

Julia

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Perhaps consider that recommendations by brokers may be made with interests other than yours in mind.

 

• 9 July 2012

• #4

burglar

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kgoodwin said:

Morningstar have a Reduce recommendation on some stocks such as CSL and RHC. If these stocks were in my portfolio, should I sell the whole parcel or only some?

kevin

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Hi kgoodwin,

Even if the recommendation is wrong (perhaps) it is going to cause some selling.
You have to ask yourself a lotta questions.
Why did you buy them?
Are the reasons still valid?
How much risk can you bear?

Are they doin' what you wanted?
Very dependant on your financial position!