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When should you Sell?

beebee
in Other Investing
Fidelity data shows nearly one-third of their investors 65 and older sold all of their stock holdings at some point between February and May while just 18% of all investors across their platform sold out of stocks.

I had a number of discussions with investors who were contemplating selling out of stocks in March. Many we retirees who worried about how an extended downturn could impact their retirement plans.

I understand why this group is more trigger happy with their portfolio. The U.S. stock market was up 10 out of 11 years heading into 2020. This crisis was looking like it could turn into Great Depression 2.0.

We’re living in scary times.

But scary times and panic are never good reasons for selling out of your stocks.
https://awealthofcommonsense.com/2020/06/when-should-you-sell-your-stocks/

Comments

  • Derf
    How many that sold out suffered by moving up a tax bracket ? No mention of this.
    Also a show of hands from MFO ers who sold out or made large sells . I'm going to say less than 5%. I'm guessing more buys than sells with this bear !
    Derf
  • Old_Skeet
    edited June 2020
    I bought the downdraft. After some good gains from the updraft I have lightened up my equity allocation moving the equity sell proceeds to the income side of my portfolio.

    Back in March I was 20/40/40 and moved to a 15/40/45 which grew to about a 12/38/50 as equities had their run. In recently rebalancing, I am now about a 10/45/45. This allocation is due mostly to low yields on cash. On the equity side I am 5% heavy mostly in good dividend equity income funds that provide qualified dividends. On the income side I am 5% heavy split among multi sector income and hybrid income funds. My plan is to let income generated inside my portfolio rebuild my cash position over the coming year.

    I am anticipating, by year end, that my cash allocation will be about 15% should current asset values remain relative to what they currently are.
  • WABACWABAC
    No sales. Just buys. I wish I had bought more for my wife's IRA. Still quite a bit of "dry powder" after transferring out of a retirement plan at Prudential. She still has a nice setup at TIAA-CREF that is fully invested.

    There will be more buying opportunities down the road.

    When to sell? You should have some sort of plan for that in advance so that you understand what you are responding to rather than acting on reflex.
  • davidrmorandavidrmoran
    I sold a lot over a month ago, will get back in drips and drabs on dips
  • expatsp
    I sold about 5% over a month ago. Not great timing, obviously. I guess I can justify it as dialing down a little risk.
  • RbrtRbrt
    No sells by me - but I’ve been cash heavy since selling our house, waiting for Dr Hussman to turn bullish. (That’s an exaggeration). I have always been risk adverse. I did put some money in a 529 near the bottom - but thought there would be plenty of opportunities for more buying. I still do.
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