re: Do not sell your shares. This is when you will lose

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I'm going to try to get through to you 1 last time. All I am saying is that where we were 2 days ago has absolutely nothing to do with where we are headed (up or down).

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And I’m going to ask again. Where are we going?

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Warren Buffett has been selling stocks at an unprecedented rate and is sitting 50% cash because he thought the market was heading south, and shocker he was right as usual. Fund managers that have been dumping stocks the last 2 days have been doing so because they think stocks are heading lower, even if they eventually head higher.

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Warren buffet is an active trader. Do you think most here are active traders? It’s an irrelevant point.

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Holding a stock because of where you bought it makes no sense whatsoever.

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Sure it does. This is an absurd statement to make when your whole point is “it is where we are headed”.

You are discussing active trading vs passive investing. So again, unless you think the market is going to go down below your cost basis, there is no reason to remove yourself from the market.

As I’ve also said multiple times now, an individual stock can have varying answers, but an investment strategy does not.

You’re a fool if you think NVDIA stays down long.

I have been dumping a ton in my IRA but it's been stagnant for the last few months. It's like being on a treadmill.

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You’re a fool if you think NVDIA stays down long.

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I was just using NVDA as an example.
The same way I was using CSCO as the poster child of the idiocy of letting your purchase price determine if you sell or hold.
Like I said there are people that bought CSCO in 2000 at its ATH of 85 that are still holding and waiting for CSCO to get back to 85 because "You ain't lost until you've sold".
Look at all of the money that they could have made by taking their lumps on CSCO in 2000 and redeploying that money.

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get your sentiment but if this ended up anything like 08, you’d absolutely want to sell after the first 15% drop. That’s a pretty extreme comp that I don’t see any reason to bring up.

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Why?

Earnings estimates are $270 for the S&P this year. That would put a 19 P/E at 5130. Not bad based on where we are now, but the market was juiced before this pullback.

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Please don’t tell me that lol. Just bought my first NVDA position at 94 yesterday.

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I bought 50k worth of nvda 125c for Jan 2027. You'll be fine.

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Any dividend cuts announced last week

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Would think most would see how it plays out first.

The most rational course of action is to pass the tax on to the consumer. Add this will keep profits. However the answer will be somewhere in between depending on industry as consumers are extremely price sensitive

Keep in mind, the S&P 500 had exceptional growth over the past two years, with returns of over 24% in 2023, followed by 23%. A market correction of 10-15% is normal and happens every 2.5 to 5 years. It has been over two years since the last significant correction, so we're due for a market cooling. Additionally, recent events have further fueled this situation.

Panic selling because you're scared or think the market will dip further is a bad idea. We might already be at the market's bottom, so withdrawing money now ensures losses. If you don't need this money for over five years, just ride it out. Statistically, this is the best time to invest as most of the market's best days happen during a bear market or the early months of a bull market. We're likely in a bear market now, making it the ideal time for profits once it recovers. The optimal strategy is dollar-cost averaging into great ETFs.

I don't necessarily disagree, but it also depends on your time horizon. If you have 20-30 years out, that's one thing. If you're nearing retirement, that's another perspective. With "Black Monday" looming and the specter of another 10% or more drop, it's real to some people and maybe they don't have time to "come back".

FWIW..

I've gone through significant ups and down like the "Dot Com" crisis, COVID, "Black Monday etc. It ain't fun looking at all that red.

What I'd learned over the years is to diversify your assets, don't panic, be disciplined with your investing and keep debt down.

Example:

Current % of assets:

Investments 11.2%
Personal Property 1.4%
Real Estate 46.8%
Retirement 40.1%
Savings 0.4%
Grand Total 100.0%

I am just DCAing into the market weekly as always for the portion of non-retirement assets owned.

Of the retirement portion, we moved the bulk years ago into indexed annuities. Get it's a bet with insurance companies, but our thinking was we didn't want to get greedy and we had other assets.

401K 8.2%
Annuity 88.4%
IRA 3.4%
Grand Total 100.0%

Locking in a guaranteed income stream of a little under $100/k per year, that's indexed, made sense to us. Particularly since I'm retiring 5/1/2025.

See ya Monday! Best of luck and keep grinding.