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“The broadly simple answer, many financial experts say, is that taking some money off the table could make sense for anyone who needs it soon. But, they add, it might be a really bad idea for those who have a long-term investment horizon and are mainly just worried about another market correction.”
Nice to be able to pull up a WSJ article instead of drawing a blank. Don’t know how you did it @Ted. But a nice job. I didn’t read all of it. The couple sentences I quoted say it all. It really is all about time horizon. Unlikely most will heed the advice. General public like to buy when the sun is shining and sell after it rains. Song as old as time,
Maybe it is a good time to sell. Any of you remember how much the market loved the turmoil Nixon brought on? I wish I had an in-house lawyer who would say he was the one speaking when I had put my foot in my mouth. More will be revealed, but it won't be good for the market.
Maybe it is a good time to sell. Any of you remember how much the market loved the turmoil Nixon brought on? I wish I had an in-house lawyer who would say he was the one speaking when I had put my foot in my mouth. More will be revealed, but it won't be good for the market.
All I remember about RMN’s impact on markets is that he is/was the only Pres. during my lifetime to impose unilaterally an immediate temporary freeze on wages and prices. (Hope I’ve described the 1971 executive order accurately.) I was 20-something at the time and enroute to my first good paying post-college job when the news broke over the radio.
Sell decisions are fraught with peril as several here and at FA have noted over the years. For longer term investors there’s the dilemma of when to get back into the market. It’s a coin-toss at best that they’ll manage to re-enter at lower prices than they sold. Even for older investors with shorter time horizons there’s the risk of forgoing substantial future gains should the markets run hot for several more years. Than there’s the sector issue. An overvalued S&P or high yield market doesn’t necessarily mean that deep value, financials or industrial metals are overvalued. Sometimes the opposite is the case as hot sectors tend to pull money away from more tepid markets. Hope I’ve made clear that despite my misgivings about the current market euphoria, I could never recommend to someone else that they sell.
What I haven’t heard mentioned lately is the Presidential election cycle. But that’s a whole different topic.
@hank; FWIIW, my only attempts to move some big chunks of my retirement money into cash in 2008 did not pay off. An advisor later pointed out how much of the recovery I had missed.
Comments
https://www.advisorperspectives.com/dshort/updates/2017/12/01/s-p-500-snapshot-up-1-53-from-last-week
Nice to be able to pull up a WSJ article instead of drawing a blank. Don’t know how you did it @Ted. But a nice job. I didn’t read all of it. The couple sentences I quoted say it all. It really is all about time horizon. Unlikely most will heed the advice. General public like to buy when the sun is shining and sell after it rains. Song as old as time,
http://jasonzweig.com/learning-from-the-bear-market-of-1973-1974/
not only the awful malaise and conflict
All I remember about RMN’s impact on markets is that he is/was the only Pres. during my lifetime to impose unilaterally an immediate temporary freeze on wages and prices. (Hope I’ve described the 1971 executive order accurately.) I was 20-something at the time and enroute to my first good paying post-college job when the news broke over the radio.
Sell decisions are fraught with peril as several here and at FA have noted over the years. For longer term investors there’s the dilemma of when to get back into the market. It’s a coin-toss at best that they’ll manage to re-enter at lower prices than they sold. Even for older investors with shorter time horizons there’s the risk of forgoing substantial future gains should the markets run hot for several more years. Than there’s the sector issue. An overvalued S&P or high yield market doesn’t necessarily mean that deep value, financials or industrial metals are overvalued. Sometimes the opposite is the case as hot sectors tend to pull money away from more tepid markets. Hope I’ve made clear that despite my misgivings about the current market euphoria, I could never recommend to someone else that they sell.
What I haven’t heard mentioned lately is the Presidential election cycle. But that’s a whole different topic.