Have Big Media Stocks Run Too Far?
They have been on a freaking tear. This brings up an obvious question: With many of these names at or around all-time highs, should you bank profits?
I'm of two minds on this.
First, when you consider the massive gains over the last year -- nearly 66% in Madison Square Garden
The great Jeff Macke did an excellent piece for Yahoo! Finance on Wednesday about not getting fleeced like so many Apple
Use trailing stops. Take profits. Don't call tops or bottoms! (That might be the best one). And I would add start writing in-the-money covered calls on winners as profits surge. Classic, but solid advice too many investors fail to take. Emotion enters the equation; they get crushed. It seemingly takes a fraction of the time for profits to evaporate that it took for them to build.
So, no doubt, a battleground name such as AAPL or a relative outperformer like the names on the chart, requires, at the very least, a look at strategies designed to take some money -- and risk -- off the table.
However, at the same time, there might not be a healthier sector to invest in than big media. As Netflix
Every name on that chart owns and/or controls premium content, ranging from sports to movies to the best primetime television shows. Time Warner, News Corp, Disney