4 ms·
“Dumping” is kind of a provocative term, but when you cash out an investment that usually means you no longer expect the asset to continue appreciating. (Or at
by rank0 5y ago
“Dumping” is kind of a provocative term, but when you cash out an investment that usually means you no longer expect the asset to continue appreciating. (Or at least that you expect a better return elsewhere)
Nobody would cash out a position if you expected further gains.
- dnautics 5y agoMany reasons to dump assets expecting further asset price appreciation: cost to maintain inventory no longer worthwhile, pivot, asset manager quits with no replacement, further gains expected but beta too high, conflict of interest, regulatory burden, etc...