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sell the bump?

This is looking to be one of those monster up days, maybe up 10% by close, of which we've had a few. And a few days later, we've always been lower than when we started. I'm guessing this will happen again. I think we're still in the early innings here, even if Congress pushes through a stimulus package today.

So I'm tempted to try to do some day trading: sell a fund at COB today, hopefully buy something similar back in a few days at a lower price.

Just don't know if I have the guts. I chickened out the last few times this happened over the past month and just sat tight.


  • I don't like to trade but in a volatile market like this one I've found myself doing just that. What I bought 4 days ago is now down 10% or more. The stimulus will be of enormous help but only a vaccine will permanently turn around the markets and economy. So I'm selling into strength.
  • @PopTart, yes, my thoughts exactly. I'm looking at what's surging, casino & resort stocks for example, and it makes no sense, except short covering or algos. So I think I may finally try short-term fund trading today.

    My plan is to sell a chunk of my largest holding, VPCCX, then buy BIAWX in a few days, hopefully after this bump has faded.
  • Always a gamble during times like these but you don't have to go all-in. Tough call but if I were to sell i'd be more inclined to sit on the cash until I see more clarity and steadiness in the market. I see no reason to race to buy anything just yet but we all have different plans.
  • edited March 2020
    I made several trades yesterday within the portion of my portfolio set aside for that purpose. For example, my investment in PDI doubled yesterday while it was once again selling at a discount (I wonder if that has changed today). No new cash is currently going into that segment of my portfolio but no cash is being taken out.

    Yesterday I also invested 2% of my available cash into OEFs (most going into stock funds). I plan to stick to that 2% per week program for now. This bear market will pass....but there is presently not much clarity in my mind as to the path it will take to get there (except that we are closer to the bottom than we were a month ago!).
  • edited March 2020
    What do you do if you are near retirements. We do not know if tomorrow is another large down day. Many predict sp500 can even recede to 1700 levels for another 30s% down. Many near retire hardworking folks may have to break their backs working another 5 years until market recovers.
  • edited March 2020
    @johnN It depends on each persons situation. I am 15 years into retirement. Our investment income currently contributes 25% to 30% to our annual household cash flow. But we can get by comfortably -- with a more modest lifestyle -- if that % drops to zero (the amount available to us this year will go down substantially from 30% if the market does not quickly rebound). My approach is different than would be necessary for a person who would be highly dependent on that income in retirement. Maybe other comments will help in that regard.
  • "But we can get by comfortably -- with a more modest lifestyle"

    And there you have it: the key to almost everything.
  • +1 @Old_Joe, and it sounds like you practice what you preach.

    I split the difference, sold a chunk of VPCCX equal to about 5% of my overall portfolio. If the market shoots up again, I'll sell another 5%. If it drops, I'll wait for these up-and-down spikes to subside, then buy BIAWX.
  • edited March 2020
    Where can you buy BIAWX with no transaction fee? Only direct from Brown Advisory Funds? Thanks!
  • Schwab.
  • Thanks!!
  • Art
    edited March 2020
    Fidelity also. BAWAX.
  • Thanks MikeM and Art!! Since I already have a Fido account, I'll go with BAWAX. :)
  • Old_Joe said:

    "But we can get by comfortably -- with a more modest lifestyle"

    yeah but what do you do if your other isn't good with 'more modest,' and mine isn't? it's always been a problem, but more of a problem now than ever before.

  • @linter- I've sent you a note via private message.

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