What are you going to do when the market suddenly drops 10%? How about 20%?
The market will drop at some point. But no one knows when. It will then come back at some point. But no one knows when. If you are prepared, financially and emotionally, to ride out the downs and ups, there is no reason to sell. If not, taking some profit from stocks that have done well and positioning into defensive stocks might not be a bad idea.
Over time, the investor who stays the course will outperform the one who tries to predict the tops and bottoms. The key is the ability to stay the course during a correction.
I've wondered the same thing. The stock market is at record highs and well above the moving average. That could be interpreted as overbought. It could indicate an impending correction.
If you take profits, you will incur a significant tax penalty.
I don't believe anyone can predict the market movement. I'm going to stay in. The real question is whether I'm in the best stocks, or should I sell something and buy something better.
Buffet believes in buying great companies and staying in it for the duration. I have come to see the wisdom of that.
I'm 28 years old and looking to have roughly 10-15K saved by the spring of 2015. This will be emergency $$ and perhaps even money to buy a home in 2-3 years.
7.5K is the total I currently have stored in a moderately aggressive brokerage account. My financial advisor's suggestion is to keep the money invested, then try to save 10-15K from scratch; my idea, however, is to pull the 7.5 from the market, pay the tax -- despite the record highs, I'm seeing little returns; and my savings is at the mercy of a market correction -- and build up the additional 2.5 - 7.5K. Then I could start investing aggressively for 2-3 years out.
Any suggestions? I don't like completely mixing my savings and investments.
Thank you,
Without detail I am confused at some of your statements:
stored in a moderately aggressive brokerage account
I'm seeing little returns; and my savings is at the mercy of a market correction
Since the crash of '08, the returns have been very good. A moderately aggressive portfolio SHOULD HAVE produced more than "little returns".
Your "savings" (savings to me is in a bank drawing about .01% interest) should not be susceptible to a market correction, but your "investments" could or would be.
If you want to have $7,500. in two or three years, put $5k in "savings", invest the $2,500. and get a part time job that can earn you about $750-1,000. per year. If things go right, the $2.5k invested will grow to $3k and you will have $3k or so in part time earnings.
So in answer to your question: Yes, pull the money from the stock market, and find a way to make (or save-give up cable TV) $1k per year.
Investing is a long term proposition. If you truly want the money in 2 to 3 years, bank it, don't put it in the Shock Market.
I would learn enough not to need a financial advisor they will hurt your returns long term and learn to think for yourself. I have been investing 30 years and never taken out money unless I wanted to buy something. I retired and am still 100% invested and plan to stay that way.
Investment accounts shouldn't be for down payments or emergency funds so you don't panic in the crashes. Money markets get no volatility so are good for stockpiling money. I would pull most of it out then save more, get your house putting a big down payment. Then get a HELOC to use for emergencies and start long term investing.
Sell the stock when the rate is high, wait and again buy when the market is low. Increase the turnover to earn good profit
I think 2015 is consider as a good market for global economy and stock market so if you stay invested you will get good return so I would adviced you to stay invested for long term
Do what you want, that's what most of us do.
Since I won't need my money for a few years, I am staying in the market.
Fear is a powerful driving force in the markets. What you need to do is invest in a sound investment strategy with a proven track record. It takes money to make money and what you need to do is make an investment in your self. Binary options are proven.
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you alone can answer that question.
Do you have enough are you going to reinvest in something better.
Are you going to distribute to family and friends, Why are you pulling?
You would take that advice from a messageboard?
