The only two valid resons to sell
If you're paying attention at all you know that the stock market is dropping like a rock right now. Everyone is selling. That's driving down prices. If you sell now, unless you've been investing since before 2003 or so you're probably losing money on your investment. As far as I can figure there are really only two valid reasons to sell in this market:
- You are about to retire and need the cash. If you're about to retire, you would want to have already been moving your stock investments into bonds which are far less volatile than the market. This is a valid reason to sell now and lose money (or lose gains) on your investment because you don't want to continue to lose more since you'll be needing that money right away.
- You sincerely believe that the entire thing is going down for good and you need to convert your money into non-perishable food items and firearms. The world of Mad Max is upon us, hijack an oil tanker truck while you still can. This is really the only other valid reason to be selling in this market that I can think of.
This is a great time to buy stocks! Everything is currently selling at a serious discount! what, 35% as of this writing? that's awesome. It's like if you had bought in 2003 or so, who says time travel is impossible. ;)
I agree, it’s a better time to buy then 35% ago:). This may not be the bottom or far from it, but I’m sure we will all look back at this as a tremendous buying opportunity. I’m just very glad I’m not heavily invested.
— Tim Oct 9, 11:51 PM #Another valid reason to sell is if you believe the market will continue to fall, and you want to buy back in at a lower cost position to make even more money on your investments… remembering that you are buying stocks / assets you believe in long term, and are undervalued in the marketplace.
— Dan Oct 10, 08:21 AM #That’s a good point Dan. I hadn’t thought of that.
— Matt Oct 10, 09:28 AM #