Will you sell Equities in a Rally?

[harley]

No, I'll never sell (except normal rebalance). I'm still DCAing my cash into the market, so I'm sort of hoping for a couple more months of ups and downs before we start the real recovery. I must admit to timing a bit in as much as I won't buy after a rally like today's. I wait a day or so and buy when it drops again.

 

[al_bundy]

seriously thinking of selling into this rally today or maybe tomorrow, so far my newsletters have been right on and new lows are probably on the way

 

[al_bundy]

didn't sell yet, but tomorrow is a good possibility

SP is steadily climbing up and if it breaks yesterday's high it should run up to around 1050 before there will be a correction which i think will take us below the Oct 10th lows

 

[bamsphd]

I'll just rebalance back towards my target AA.

 

[audreyh1]

It depends on how big a rally we have! If it's a really good one, I'll be rebalancing by trimming equities and building up cash/bonds.

Audrey

 

[Bikerdude]

It depends on how big a rally we have! If it's a really good one, I'll be rebalancing by trimming equities and building up cash/bonds.

Audrey

In the original post I indicated a 20 to 25% rally. Sorry it was not in the poll headline. We're getting close to 20%.

 

[CuppaJoe]

I started buying again in June and will continue buying through ups and downs.

 

[Grep]

Just for my own edification, what is the correct way to "sell into a rally?"

Assuming we enter a substantial rally, the "best" thing is likely to just hold ones' position. However, if one wound up over-weighted in stocks at this point, a rally will only make the imbalance worse.

So, if one is determined to rebalance, and assuming that one can't time the market or judge which stocks or funds will win, I presume that tax issues dominate here. Does one sell the biggest percentage short-term losers first, working towards long term and lesser losers, followed by the smallest gains? Is there a better strategy?

 

[audreyh1]

In the original post I indicated a 20 to 25% rally. Sorry it was not in the poll headline. We're getting close to 20%.

Oh - sorry - missed that. Only a 20 to 25% rally may not be enough since I didn't rebalance at the perfect bottom, but rather a couple of times on the way down.

I'll just have to keep running my spreadsheets into any major rallies and see.

But, if we do get close to 1150 or so on the S&P500, I suspect I will be blowing well through my rebalance triggers, and I will rebalance (i.e. sell equities).

Unfortunately, that is still a ways from here!

FWIW, I checked the first category since I will be selling some, but can't imagine going over 20% unless we rally 40%!

Audrey

 

[al_bundy]

i probably won't sell since i have a 30 day trading restriction in my 401k. looked at 2001 and 1973 and in both cases the last leg down and the rally happened within 30 days. still think we are going to rally soon and will probably rebalance into cash sometime early next year depending how things go

 

[utrecht]

i probably won't sell since i have a 30 day trading restriction in my 401k. looked at 2001 and 1973 and in both cases the last leg down and the rally happened within 30 days. still think we are going to rally soon and will probably rebalance into cash sometime early next year depending how things go

Rally soon? We already rallied 15% off of the bottom.

 

[al_bundy]

i think the nasdaq has seen the bottom for 2008 but not the Dow or SP500. I think the latter two will have a selloff soon that will go below the October 10th lows and rally back up

it's in another thread, but the DJIA and the DJ Transport average always confirm each other. if one hits a new high the other one will too. same thing with a new low. The Transports went below and rallied above October 10th, but not the DJIA

 

[Bikerdude]

I'll probably sit tight, but I was thinking of reducing my risk to the downside a bit by selling a little D&C balanced , International and DVY. I would use the funds to buy Wellesley. My upside would be affected but I would think not by that much. I would be very tempted with a 50% rally.