Sell 1/3 of 3M (MMM)
As noted in yesterday’s update, we’re going to reduce risk today by taking partial profits in 3M (MMM). I still hope to hold the rest of our shares for the long term—3M is a 100-year dividend payer and its long-term trend remains up. But the stock has fallen 15% over the past 10 weeks—including several big one-day drops on high volume. (Over the same time period, the S&P 500 has lost 7%.)
MMM is now at its lowest level since October, and has been below its 200-day for two solid weeks. Though the stock could bounce here (yesterday’s market rally was encouraging) there’s no obvious support level in sight, so more downside is equally possible.
Given the shakiness of the broad market, we want to be reducing our exposure to weak stocks today. So I’ll be selling 1/3 of our 3M (MMM) shares at today’s average price.