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Old 02-25-2020, 04:01 PM
The Elkster The Elkster is offline
 
Join Date: Oct 2007
Posts: 2,358
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Quote:
Originally Posted by Dean2 View Post
So to be clear. For most longterm buy and hold investors, the market has to come off 20 percent and in many cases up to 50 percent, as in drop to half where it is now, before it would make sense to sell, pay the tax and sit on the sidelines till you are sure the market has bottomed. The larger your accumulated gains the more the market needs to drop before you break even, let alone end up ahead by selling out. Each person needs to do a detailed analysis, specific to their individual situation. You need to know exactly how far your individual stocks will have to drop for it to make sense to sell. Even of the market comes off 40% it doesn't mean the stocks u are holding will do that bad or they could do far worse.

To just advise to sell out because things are gong to be bad is just way too simplistic and if you investment advisor is giving u that kind of advice then you need to fire him.
Every case is different and I don't advise anyone to do anything without carefully considering their own situation. I'm just warning that this is not likely to be a normal correction. I'd be leery about buying the dip. Preserving cash is not a bad thing right now. Penny saved is a penny earned.
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