POLL: Are you staying in the market or cashing out?
Answers
457 points
SallyG answered one year ago …
I'm trading stocks in which I have less confidence for bargains on "better" (IMHO) stocks.
Read more from SallyG
904 points
jillybeansisme answered one year ago …
In my 401K I am in the money market because of it containing only SUCKY investment choices. In my IRA I am fully invested. I wish I kept some of the cash instead of buying into the market a couple of weeks ago, but I will stay invested since it is for long term.
Read more from jillybeansisme
3963 points
MNSL answered one year ago …
I think if somebody has invested in correct stocks they should stay for long term.
Some stocks in the rotating sectors and neglected sectors will not only out perform market in the next 03 years but also in the next two decades.
I think even technology and health sector will underperform market in the next 03 years.
Technology sector and health sector are more vulnerable now.
Sectors just because becomes cheaper does not mean they are good buys. We should buy only promising sectors with real growth in the next 02 years and next decade
117 points
driver answered one year ago …
I closed out my account last year. One of them @ -$2K loss. Fortunately the other ones made up for most of the loss. Now I'm as nervous as a cat in a kennel full of hounds about getting back into the investment game. I'm retired and my pension doesn't have a cost of living adjustment.
Read more from driver
368 points
ads answered one year ago …
I'm holding on to my current investments as they are very sound companies that were poised for very large increases when I purchased them and they are not being effected very much by the current down-turn in the economy. Likewise with the current valuations there are some fantastic buys out there, so I'm in the process of scrounging together whatever I can safely spare to dump into the markets over the next few months to invest further into two of the three companies that I'm currently holding as well as a handful of others that are also very sound and will come out of this downturn in a very good position.
After all, the key to successful investing is knowledge. Thus if you do your "homework" and fully research the comanies that you invest into and do not let your emotions get the better of you there is a lot of money to be made, especially once the markets recover. As such I'd rather buy "company A" that has an asset value of $0.72/share and has been seeing 35% growth and 15% profits over the last several years at $0.09/share and see a short term loss while it drops to $0.05/share during the dowturn that is barely even effecting their business and then come out of it seeing a share price of upwards of a dollar per share once the markets recover in a year or two and people wake up and recognize that this companies fantastic management continues to generate profits and growth through the rough times.
102 points
mary answered one year ago …
I am sticking with all of my mutual funds.As my accountant stated "it isn't a loss until you CASH OUT " dummies. A loss on paper is not yet a true loss, so hang in there. Also, if you are in investments paying dividends, you are making money when others are not. I have also bought into several really deep values a couple of weeks ago and have not lost a dime on those. Now I truly understand the meaning of "buy low" and "sell high" you just cannot go wrong buying a good company at a value.
Read more from mary139 points
lytle answered one year ago …
An interesting question and so many philosophies!
I think it depends upon what style investor you are. If you are a day trader or swing trader then being in and out of the market can make you some decent profits (assuming you are an experienced trader) by trading stocks short, trading options, etc. for short-term trading. However, if you are a long-haul investor I would think you'd be wise to sit on the sidelines for the moment and do your homework like "ads" suggests, be patient, and wait for some concrete evidence of the bottom.
What sense does it make to buy a stock now at 50, watch it drop to 20 because this bear market isn't over, and then finally see it climb back up to 50 after the bottom has been reached? Isn't it easier on your nerves to simply wait for the turn, see evidence that the market is once again bullish, and buy it at 50 as it rises?
The only argument for buying stocks right now is if you're convinced that this is the bottom and don't want to miss a few dollars of profit and I'm sure you can't predict the bottom because nobody can.
Good luck and make money!
Don
989 points
rvilmur answered one year ago …
I am staying in the market and accumulating some of the insane bargains with high dividend yields. For some stocks, I will even go on margin when the dividend yield is much larger than the cost of the margin interest.
For those that are fearful that the market bottom is still a long distance away, I think that you still need to be slowly accumulating those stocks that you feel will be in business for a long time to come. Just don't spend all your cash in one burst like you might do it you think that you have identified the market bottom.
149 points
Philip answered one year ago …
I am mostly in cash BUT. I just nibbled on some strong Canadian trusts paying 20-25% dividends.
WHY? Their currency is down almost 30% against the US $. Over time they will regain a good portion of that. The future currency gain will provide another 20-30% gain in the value of the trusts.
If they go down from here I will buy a little more and get paid 25-30% dividends with the same upside of the currency reversal. If they cut their dividend 50% I will only be getting 10-15%, still not bad.
For me this approach makes waiting for a new bull market a lot less painfull.
