In some cases, the decision to sell a stock or stocks may be precipitated by a combination of intrinsic and extrinsic factors. For example, let’s say you lose your job because of a corporate restructuring and are a few years from retirement. You have been uneasy about the markets’ elevated levels and historically high valuations, but you previously felt little inclination to act upon it. Now, however, you would like to conserve your capital with the intention of using it in the business that you always dreamed of starting. In this case, your sell decision is justified by intrinsic reasons (your lifestyle change) as well as extrinsic ones (markets’ elevated levels /valuations).
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