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re: market thoughts...bubble?

Posted on 2/16/17 at 11:30 am to
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10244 posts
Posted on 2/16/17 at 11:30 am to
I always take some gains. Maybe 10% off the top. If you don't take gains and go to some cash, you really don't have any gains, you have unrealized gains.

My thought process is that it is going to go down and correct. Always does. When it does I have readily available cash (the gains I took throughout the life of whichever bull market we are in).

Others like to stay all in, all the time. I don't think that makes sense, but that is a very popular thing to do. In the long run it always seems to work. Unless you are getting ready to retire and the correction happens around that time. Then come the news stories about 70 year olds who can't retire. I always wonder who gave them the advice to not take a realized gain and stay all in.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
73591 posts
Posted on 2/16/17 at 1:22 pm to
quote:

I always wonder who gave them the advice to not take a realized gain and stay all in.




or switch to more fixed income conservative investment choices? Even if you have everything on monthly paying dividend stocks you can always get stopped out and get back in later......provided the imvestor has enough cash or other means of income to last until they are back receiving dividends again. This is all in reference to someone who is retired.
This post was edited on 2/16/17 at 1:29 pm
Posted by Joshjrn
Baton Rouge
Member since Dec 2008
27308 posts
Posted on 2/16/17 at 8:23 pm to
quote:

Others like to stay all in, all the time. I don't think that makes sense, but that is a very popular thing to do. In the long run it always seems to work. Unless you are getting ready to retire and the correction happens around that time. Then come the news stories about 70 year olds who can't retire. I always wonder who gave them the advice to not take a realized gain and stay all in.


It makes perfect sense, unless you're about to retire. But that's not an issue of timing the market; that's an issue of timing your life. If you aren't moving away from equities within ten to fifteen years of retirement, you're a fool and a gambler.

If you do so before, I believe you to be a fool and a gambler.
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