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> A: Think about how to rotate your portfolio to buy that which is cheap and sell that which is expensive. Buy low, sell high. How enlightening this guy is...

jeffreyrogers 8y ago
It's a little more subtle than that. He's saying that if you have an existing portfolio and you're worried about a market correction you should start selling off your expensive assets that have already appreciated and buy ones that are currently cheap. Obvious? Probably. But still something most people don't do.
- dominotw 8y ago
  > assets that have already appreciated There in lies the rub.
- privacypoller 8y ago
  Except knowing this is not the hard part - even professional investors sell too early on the upside and hold on to the losers too long. What does "already appreciated" mean? Is it Amazon today? or stock you bought for $60 and sold for $300? Is Walmart "cheap" today because they're well positioned for distribution from digital sales, or expensive because their bricks&mortar stores are dinosaurs? So, yeah, we can mine his answers for subtle nuance, but it seems we quickly return to the crux, which is "but how?"
  - jeffreyrogers 8y ago
    Sure, I'm not arguing with that. I was just saying that the OP's criticism is a bit misguided. Yours is more reasonable.
    - craftyguy 8y ago
      Eh, the answer to "but how" needs to be understood before you can "buy low, sell high." I don't think my criticism was misguided at all.
  - AnimalMuppet 8y ago
    A long time ago, I read about a guy who made a lot of money on the market. Someone asked him how. He said, "I always sold too soon." You aren't going to know if it's too soon to sell Amazon. But if you wait until it's not too soon, it will be too late. But of course, there's "too soon" - say, when you've made 70% of the possible gains. And there's "really too soon" - when you've made 5% of the gains. How do you know which is which? I don't know.

jeffreyrogers 8y ago

It's a little more subtle than that. He's saying that if you have an existing portfolio and you're worried about a market correction you should start selling off your expensive assets that have already appreciated and buy ones that are currently cheap. Obvious? Probably. But still something most people don't do.

dominotw 8y ago
> assets that have already appreciated There in lies the rub.
privacypoller 8y ago
Except knowing this is not the hard part - even professional investors sell too early on the upside and hold on to the losers too long. What does "already appreciated" mean? Is it Amazon today? or stock you bought for $60 and sold for $300? Is Walmart "cheap" today because they're well positioned for distribution from digital sales, or expensive because their bricks&mortar stores are dinosaurs? So, yeah, we can mine his answers for subtle nuance, but it seems we quickly return to the crux, which is "but how?"
- jeffreyrogers 8y ago
  Sure, I'm not arguing with that. I was just saying that the OP's criticism is a bit misguided. Yours is more reasonable.
  - craftyguy 8y ago
    Eh, the answer to "but how" needs to be understood before you can "buy low, sell high." I don't think my criticism was misguided at all.
- AnimalMuppet 8y ago
  A long time ago, I read about a guy who made a lot of money on the market. Someone asked him how. He said, "I always sold too soon." You aren't going to know if it's too soon to sell Amazon. But if you wait until it's not too soon, it will be too late. But of course, there's "too soon" - say, when you've made 70% of the possible gains. And there's "really too soon" - when you've made 5% of the gains. How do you know which is which? I don't know.