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> Also by sitting in Stocks, you not only lost 20% this year, but also 9% due to inflation for a total loss of ~30%+. But if you sold the stocks, you would hav
by quesera 4y ago
> Also by sitting in Stocks, you not only lost 20% this year, but also 9% due to inflation for a total loss of ~30%+.
But if you sold the stocks, you would have taken an immediate tax hit of ~20-35%, and you would have to time the bottom to get back in.
So, it's not at all clear that getting out makes sense. Depends on the depth of the decline, and that is unknowable.
- remote_phone 4y agoOnly on the profits, if you even have it.
- dragontamer 4y agoSurely you have some cost-basis lot where selling just 10% of your portfolio results in a capital loss (ie: a tax _break_) if you were going to switch into Cash today. > you would have to time the bottom to get back in. Nah, you just rebalance at 10%.