Should You Take Some Money Off the Table?
October 6, 2026
“When markets are hitting records, discipline matters more than prediction.”
——-
It is one of the most tempting questions in investing: The market has had a good run — should I take some money off the table? It is especially relevant right now. The S&P 500 and Nasdaq reached record territory again this week, supported by strong corporate earnings expectations and continued enthusiasm surrounding artificial intelligence. Yet there are reasons for caution. According to LSEG data cited by Reuters, the S&P 500 recently traded at roughly 19 times expected earnings — lower than earlier peaks, but hardly bargain territory — while higher long-term interest rates remain a potential headwind. After a strong market advance, trimming a position that has become too large can make sense. But selling simply because stocks have reached new highs is something very different.
History offers an important perspective. Research from Vanguard examining U.S. stock-market data going back to 1950 found that investing when stocks were at an all-time high did not automatically lead to poor subsequent returns. In fact, average one-, three- and five-year returns following record highs were slightly better than returns following other trading days, although that advantage disappeared over longer periods. That doesn’t mean the market cannot correct — it certainly can. It means that a record high, by itself, is a poor sell signal. J.P. Morgan Asset Management has made a similar point in its long-term investment research: attempting to jump in and out of the market is extraordinarily difficult because some of the market’s strongest days often occur close to its worst ones.
So, should you take some money off the table? Perhaps — but there should be a reason beyond fear. If one stock or sector has grown into an outsized portion of your portfolio, if your financial needs have changed, or if you are approaching a point when you will need the money, rebalancing can be prudent. What I would be cautious about is trying to call the top. Having watched markets for decades, I’ve learned that Wall Street has a remarkable ability to make both excessive optimism and excessive pessimism look perfectly rational at the time. The better question may not be, “Is the market about to fall?” but rather, “If it does, is my portfolio positioned so I can live with it?”
The Takeaway: Taking profits can be smart portfolio management. Trying to predict the exact top is market timing. Know the difference.
Please keep in mind this information should not be considered as financial advice. Investment decisions should be based on individual research and consultation with a qualified financial professional. The value of investments can fluctuate, and past performance is not indicative of future results. Always consider your risk tolerance and financial goals before making investment decisions.
