Deleted
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Post by Deleted on Nov 7, 2023 21:01:38 GMT
A friend of mine sold 50% of his stocks last year in 2022 after market have declined thinking recession will come. He is in 50% cash and missed the upside in the markets this year. So he took the loss, missed the upside and now wondering what to do? He feels if he go in now he will be going in at top, which is 3rd bad timings in a row.
Have you seen any strategies to overcome this mistake?
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Post by uncleharley on Nov 7, 2023 21:11:09 GMT
Hiring a manager would probably work.
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Post by gman57 on Nov 7, 2023 22:43:45 GMT
Yes, tell him to decide on an asset allocation stocks/bonds he feels comfortable with and then invest at those levels. Rebalance whenever he feels like it but stick to the asset allocation percentage through ups and downs. Don't try and time the market. Problem solved.
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Post by Mustang on Nov 7, 2023 23:32:37 GMT
I don't have any advice on undoing history. It cannot be undone. Trying to make up ground usually involves taking on more risk. One bad decision in a more risky venture could result in losing it all.
Moving on requires an understanding that sunk costs should never influence decisions. Not ever. It really doesn't matter how much was spent before. What matters to today's decision is future costs and benefits. I would suggest he reevaluate his goals, balance that against risk and determine the asset allocation that meets those goals and risks.
It is really hard to let go of losses. But it is necessary to have a solid foundation moving forward.
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catdog
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Post by catdog on Nov 8, 2023 0:36:48 GMT
I am guilty of the same thing. I sold all my equities on November 9 2022. Coming onto the one year anniversary.
Remind your friend that he chose the perfect time to do something that is ill advised. Getting 4 to 6% risk free is a rare occurrence. My first step "back in"
was not equities, but FBND.
Catdog
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Post by FD1000 on Nov 8, 2023 1:01:34 GMT
A friend of mine sold 50% of his stocks last year in 2022 after market have declined thinking recession will come. He is in 50% cash and missed the upside in the markets this year. So he took the loss, missed the upside and now wondering what to do? He feels if he go in now he will be going in at top, which is 3rd bad timings in a row. Have you seen any strategies to overcome this mistake? Someone who doesn't know how to trade should be invested in AA according to her goals and do nothing. Predicting the future is difficult and why I gather dozens of bad predictions by known "experts". |
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Post by Norbert on Nov 9, 2023 13:44:41 GMT
A friend of mine sold 50% of his stocks last year in 2022 after market have declined thinking recession will come. He is in 50% cash and missed the upside in the markets this year. So he took the loss, missed the upside and now wondering what to do? He feels if he go in now he will be going in at top, which is 3rd bad timings in a row. Have you seen any strategies to overcome this mistake? Someone who doesn't know how to trade should be invested in AA according to her goals and do nothing. Predicting the future is difficult and why I gather dozens of bad predictions by known "experts". That sounds like a great use of your time. |
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Post by steelpony10 on Nov 11, 2023 23:39:49 GMT
@waffle2 , I assume that person has been investing a while and has seen market swoons of varying lengths before? What did they do in the past to “get” back in? uncleharley , is correct. When I get even more demented I’ll probably take the same advice. |
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