I sold all my stocks and bonds today.
- Thread starter k1xv
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How long? Analysts say that the market always goes up over an 80 year period. Yeah, I haven't got that long.
I believe that we are in for significant political risk next year, so I have been trying to raise cash, but the investments that I wanted to sell have recently dropped. The Santa Claus Rally was scared off this year.
If any of it was on a taxable account, you already lost a huge percentage just to pay the taxes.
I gambled in April; sold some Apple, bought NVDA. I'm up 35% or so. My experience has been that splits are overrated. Every dope seems to think that this is the stimulus. Apple in 21 and NVDA this year, have proven that to be wrong.
Apple is my biggest holding. I'm up 1,040.4%. In the first half of 2025, it's easily going to 325. Yeah, I shudda sold years ago.
I beg to differ. Sometimes you can anticipate changes based on historical trends. I can change the allocation of my TSP account (I work for the Fed) and had great success last year doing so. This was possibly an anomaly but nonetheless an excellent ROI…..luck or good strategy…your call
At a certain age or portfolio value, one should consider going conservative.
If you haven't got time, take a hard look. Best of luck to you.
Everyone looks good the past 4 or 5 years, right?
Disagree.
There is an appropriate allocation, including when you’re retired, and it should include stocks.
No retiree should be completely, 100% in bonds and cash. Neither of them are “safe”.
Bonds go down when interest rates rose, as they have over the past few years. Cash and bonds lose out to inflation.
If you retired say, 5 years ago, you would have missed out on huge gains and your portfolio of bonds would have been crushed by rising interest rates while your cash was hammered by inflation.
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Investment risk is very personal.
In retirement some will be aggressive, mostly in stocks, some will be conservative, mostly in bonds. Most will end up closer to 50/50.
In retirement some will be aggressive, mostly in stocks, some will be conservative, mostly in bonds. Most will end up closer to 50/50.
I would think, depending on personal risk level. I just felt that almost 46% ROI was incredible and not likely the norm; but I may be wrong. I’m no financial advisor
Personally I would never sell out of all stocks and bonds. I like to keep money in CD's to cover any big dips and allow myself to buy things much lower in price if the economy ever takes a huge hit. Plus with investments everyone else is in the same boat. The problem is if the market drops a lot the interest rates on CD's and other quick cash type investments yield very little and you cannot keep up with inflation. Never time to time the market or try to catch a falling knife. The trick is to be well diversified. If you give your stocks and investments to someone younger hopefully they have the time to ride it out when the market goes back up which historically it always does.
Why not just use stop loss orders to control risk?
That's the beauty of compounding. 8% CAGR will get you a cumulative total of 46.9% and historically the stock market returns 7-8% per year.I would think, depending on personal risk level. I just felt that almost 46% ROI was incredible and not likely the norm; but I may be wrong. I’m no financial advisor
That's averaging the boom and bust years over several years and those booms and busts can be quite a ride and not in a good way.
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Lately, this has been helping me in many facets of life, high accuracy, very sophisticated algorithm
Personally, I tried OPs method in the 90's, and found I was minimizing my returns.
A friend's friend did that in March 2020--he likely cost his family a lot (He made a similar claim so I recorded the S&P 500 that day).
The way to look at it imho is a very wealthy person, or a mutual fund manager can't possibly move all out and all in, and they don't. So why should the rest of us do that. We may not get the information that they do, but why should we make matters worse by not using fundamentals? Very hard thing for me to explain to my mom (I took her advice and sold amazon in 2001 because it had tripled).
Lastly, this thread is permanently out in the ether. So time will show whether this was good, or bad. S&P was down 1.11% at 5970.84. For me, that's more than half of the new Chevy Tahoe that I want. But is it really? No. 1.11% is not a lot on the market, and those funds are not to be used to buy a Chevy Tahoe. Took me a couple decades to convince myself. A bad day on the market, say 3% down, now why wouldn't I have sold and preserved that money and bought a new Escalade? Because they aren't the same.....
Everyone's different.
Some people choose investments based on when they will need the money, not about whether they're retired or not. Also, if you have your expenses covered with something like a pension, you can take more risk with some accounts.
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