3 ms·
> If you're already in the market, well you're kind of stuck now. I don't think this really makes sense, unless there is some barrier to entry to selling. If y
by GhostVII 7y ago
> If you're already in the market, well you're kind of stuck now.
I don't think this really makes sense, unless there is some barrier to entry to selling. If you wouldn't advise someone with a free $20k to invest, why would you advise someone with $20k in investments to hold on, just because of sunk cost? It's effectively the same thing. If you don't need the money for a long time, you should invest regardless of what the market is doing. If you do need the money soon, you shouldn't be in the market at all.
- cletus 7y agoI certainly understand your sentiment and it's a reasonable one: if you wouldn't buy, why would you hold? Normally I like this POV. People stick with "losers" (stocks, not people) to "get their money back" and that certainly applies there: you've already lost that money, you just haven't realized it. But there is a difference. Like if you're in the market now, it's for a reason. Likewise, if you're out of the market now, there's a reason. Hopefully your reason for being in is long term (5+ years), at which point, not a lot has changed. If you still have gains and those aren't in a tax-deferred account, you may accrue a tax debt by selling now. But for those not in yet, there will be opportunity here. There always is because at some point the market is oversold. My point is that we're nowhere near that yet because the number of cases is only going to go up for at least another 3-6 months and the likelihood that you miss a sustained rally in that period is pretty low.