Investors in red-hot Nvidia and Eli Lily face a high-class problem: What to do next with stocks that are on historic winning streaks? These two big winners of 2023 are back at it again this year. Nvidia has soared more than 40% in 2024, making it the best performer in the S & P 500, as it was last year. Eli Lilly has jumped almost 27%, building on its 59% gain in 2023. In February alone, the stocks are up about 15% and 14.5%, respectively. The long-term outlooks for Nvidia and Eli Lilly — both longtime Club holdings — brightened in recent weeks, leading to additional gains for the stocks. In Nvidia’s case, large customers and key partners reported results and issued guidance that the signal demand for its market-leading artificial intelligence chips remains fervent. Meanwhile, the launch of Eli Lilly’s all-important obesity drug Zepbound is off to a blistering start, as confirmed by Tuesday’s earnings report and 2024. Still, the rallies are dramatic, prompting some on Wall Street to suggest the stocks are moving too far, too fast , and are due for a correction. This leaves Club members who own Nvidia, Eli Lilly, or both, wondering how to proceed with their investments. Should you sell the whole position for a healthy profit and move on to a less-appreciated stock? Trim a little bit? Or maybe do nothing at all and just let it ride? (Our discipline is to generally avoid buying shares at or near all-time highs.) What to do next will vary from person to person based on his or her cost basis, time horizon, risk tolerance, and investment goals. However, there are two primary questions every investor should ask before taking action in a winning position. The specifics of these two stocks are extraordinary, but these two questions generally apply to any rallying stock. NVDA 3M mountain Eli Lilly’s stock performance over the past three months. Have you sold any stock recently? Start here: When was the last time you trimmed your position? The further the sale is in…
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