Wall Street is full old-timey investment sayings. One of the best adages goes “Bulls make money, Bears make money, but Pigs get slaughtered.”
There’s some evidence of truth to that statement. Being too greedy when it comes to investing can have major portfolio implications and the concept of mean reversion is very real. No one ever lost money taking some profits on a stock. While it can be hard to do, selling and trimming back some of winners is an important piece of portfolio rebalancing.
After a year of torrid growth, plenty of energy stocks have surged to new highs. Gains in hydraulic fracturing, production and prices for the underlying commodities have lit a fire under a variety of stocks in the oil and gas industry — with the broad based Energy Select Sector SPDR (XLE) up about 20% this year.
With that said, it could time to trim back positions in some winning energy stocks. And with the new year quickly approaching, today could be a prime opportunity. Here are five of the best candidates to trim after a 2013 surge.