Is It Time To Sell Stock In These 10 Top Performers Of 2021?

This year has been a great year for stocks overall, with the SPDR S&P 500 ETF Trust SPY on track to finish the year up more than 24%. Unfortunately, some stocks that started off the year red-hot are limping into the close of the year as investors cash out of their gains and rebalance their holdings for 2022.

Meme stocks AMC Entertainment Holdings Inc AMC and GameStop Corp. GME are down 14.3% and 20.4%, respectively, so far in December after taking Wall Street by storm earlier in the year. But it’s not just sellers cashing out of meme stocks.

Other sellers are rotating from growth stocks to value stocks in anticipation of more Federal Reserve tightening and several interest rate hikes in 2022. Rising interest rates are typically bad news for unprofitable stocks because they increase the cost of interest on their debt. Rising rates also reduce the value of future cash flow, which pressures the valuations of growth stocks.

Related Link: How to Sell Stock: A Step-By-Step Guide for Beginners

As a result, some of the best growth stocks of the first half of the year have been experiencing heavy selling pressure in the closing weeks of 2021.

High-Flyers Making Crash Landings: Benzinga ran a screen of stocks that are up at least 50% year-to-date in 2021 but are down at least 20% in the past month to get an idea of which high-flying stocks investors are ringing the register on.

Here are 10 stocks that stood out:

• Asana Inc ASAN, one-month loss of 48.9%.
• AMC Entertainment, one-month loss of 42.2%.
• Riot Blockchain Inc RIOT, one-month loss of 38.5%.
• LendingClub Corp LC, one-month loss of 38.5%.
• Newegg Commerce Inc NEGG, one-month loss of 37.3%.
• Cloudflare Inc NET, one-month loss of 32.7%.
• Marathon Digital Holdings Inc MARA, one-month loss of 30%.
• Silvergate Capital Corp SI, one-month loss of 29.3%.
• GameStop, one-month loss of 28.9%.
• Inmode Ltd INMD, one-month loss of 27.1%.

Photo: Andrea Piacquadio from Pexels