Should I wait for a small rally to sell?
Posted November 21st, 2008 by yuengling
output
I had several grand in foriegn mutual fund but for the most part it mirrors the american stock market to a "t". Its way down and I wanted to sell it and put my money in a commodity fund. Should I wait for a small rally or has the bottom floor of 8,000 range broken a psychological barrier that the market won't recover from anytime soon.
Bookmark/Search this post with:
It appears there was a
rally, of sorts, on Friday.
Don't be hasty (sell before really thinking) and don't be greedy (wait too long).
I sold my american stocks
I sold my american stocks but kept my international stocks. I broke even cause I got out early on the american funds but thought that the international mutual fund would weather the storm, it didn't. The international markets are down lower than the american stocks!
I believed america was going lower but not international. Its an international mutual fund but denominated in dollars.
ticker: dodfx.. for the last several years its done way better than the american stock market.
http://finance.yahoo.com/...
Liquidate In Stages
Sometimes it's better to gradually enter or exit the market in stages (by splitting your account into thirds or quarters). You are less likely to kick yourself for buying or selling everything at the worst price.
If it's any consolation, the
If it's any consolation, the commodity fund would have done even worse than the foreign stocks. All commodities including silver have lost well over 50% of their value in USD from their tops earlier this year. Gold has held up somewhat better, and is still above the $650 it cost a couple of years ago.
Do you need the money soon?
If not, I'd leave it put.
r u nuts?
you are only about a year too late!
The market is going down so is the economy we are heading for a severe depression much worse than 1929.
R U nuts?
The only thing to hold now are either double inverse funds or treasury bills.
T-bills are effectively
T-bills are effectively yielding zero percent, so they have nowhere to go but down.. IEI, the intermediate term Treasury bond ETF, has gained 10% this year, and may not be maxed out. Of course, most of us here believe that eventually the dollar is headed toward zero, so any investment in US bonds has to be monitored closely or protected with hedges.
T-bonds are not going to make you rich though. If I were a young man with only a few grand to re-allocate, I think I would swing for the fence gambling with it.
If you believe it's likely
If you believe it's likely that your current funds will go lower and that the commodity fund will go higher then you should do the swap immediately regardless of price. Sell the one and buy the other. Basically, put your money where you believe you are least likely to lose it and most likely to gain.
What the heck you
been waiting on?
Not if you own Citi
got word that it's not looking good.