Written by Sam Kovacs
Introduction
Buying safe, quality stocks has been an investment theme which has driven performance these past 12 months. Buying high quality consumer staples and utes has been very rewarding. The added benefit is that these sectors usually fare well in recessions too, so this year investors which shifted their portfolios towards these sectors have profited while theoretically making their portfolio safer.
Yet in the process, some stocks have became extremely overvalued. When this happens, and you own these overvalued stocks, you can benefit from selling these stocks, realizing value and increasing