Know when it's time to sell a stock

Author: U.S. News Money

Peter Kelly 150x150

Finance Professor Peter Kelly was quoted in a U.S. News Money article about leaving out emotion when evaluating whether or not to sell a stock.

Kelly has pinpointed one metric that might offer a clue on whether to cut the cord. In his study "The Information Content of Realized Losses," Kelly used historical stock market data to answer the question, "Do insider stock sales predict future returns?" Turns out, they do: When insiders sell company stock for a loss, the stock's subsequent six-month return is 188 basis points lower compared to other such periods.