Will you sell Equities in a Rally?

[Bikerdude]

Just wondering how many of us will sell stocks into a 20 to 25% rally. I may change my allocation slightly but I'm still undecided.

 

[Notmuchlonger]

Nah. Im just holding on to stuff with a white knuckled kung fu death grip. Down or up thats all I do. Probably will regret it years from now. I do the usuall re balance thing.

 

[Zathras]

Only if one of my dividend payers cuts their dividend and I can get a better dividend payer with the money from the sale.

 

[Bestwifeever]

I predict there will be lots of mini-rallies, each one ended by people selling off who vowed they would sell off "when I've recovered X percent of my portfolio," until those people are all out of equities. Then the real rally will begin. Maybe .

 

[ziggy29]

I've decided my new long-term target AA is going to be 60/40 instead of 70/30. But I'm at about 57/43 now, and I'm not going to rebalance down to 60/40 into a strong rally. If my portfolio comes back to close to 70/30 again from stock appreciation, then I'll probably rebalance down to 60/40 and stay there.

 

[dex]

I predict there will be lots of mini-rallies, each one ended by people selling off who vowed they would sell off "when I've recovered X percent of my portfolio," until those people are all out of equities. Then the real rally will begin. Maybe .

Agree - I think the term is called "Overhang"

 

[FIREd]

Yes I would probably sell some equities into a 20-25% rally. I am close to my ideal asset allocation now, so any significant gains for stocks would probably trigger a rebalance.

 

[73ss454]

I'm waiting for 80 to 100% rally to make my move. I'd like to get most of my money back before I jump.

 

[FinanceDude]

I'm waiting for 80 to 100% rally to make my move. I'd like to get most of my money back before I jump.

Well, if you sell on the way UP, you could always call it "averaging up", which sounds better than "averaging down".......

Look on the bright side, you retired not long before Ford and GM are going to go bankrupt, and 1500 dealers or so will go belly up. So, you "escaped" that fiasco.........

 

[73ss454]

Hey, that's why I retired. My boss sold the franchise to the LM dealer down the road and rented the place to Chrysler for 88K a month for 20 years.

I think my boss may be holding an empty bag soon, good for him.

 

[FinanceDude]

Hey, that's why I retired. My boss sold the franchise to the LM dealer down the road and rented the place to Chrysler for 88K a month for 20 years.

What are the chances that Chrysler can continue to pay the $88K a month??

 

[73ss454]

Exactly!

 

[FinanceDude]

Exactly!

So, the contract that your old boss signed with Chrysler is as good as a VA from one of the big insurers?

 

[73ss454]

Hey, maybe the Government will step in and guarantee it, I hope not.

Looks like Obama is going to get in and distribute some of my X boss's $, how cool is that.

 

[NW-Bound]

Being at a more conservative AA than I usually keep, due to price drop and stop loss order triggering and not having rebalance, I am not selling. Heck, I have not even got around to buy yet.

 

[OAG]

If you are going to do it, tomorrow morning may be a good time.

 

[jimnjana]

I plan on selling the speculative positions I have taken on the way down.

Jim

 

[jIMOh]

If we get a 50% rally (goes up 50%) I might move around 5% to a bond position, but the move upward would need to be significant before I even consider selling.

I was 97% equity and 3% bonds at beginning of June. My intention is to move 1% to bonds every 6 months in a slow move to 90-10 or 80-20. The market has given me 4-5% bonds already without me doing a thing... so the market would need to go up enough for the following dates/ allocations to be out of whack:

December 2008 4% bonds
June 2009 5% bonds
December 2009 6% bonds
June 2010 7% bonds
etc.. (every 6 months, add 1% bonds)

If my bond position at any point is under those amounts, I will sell equites, otherwise the market needs to go up and I need to hold.

I am an estimated 18 years before FIRE.

 

[Bikerdude]

If you are going to do it, tomorrow morning may be a good time.

Yeah, halfway to 20% today. We'll have to see how it holds. Could be "sell the news" type of day.

 

[W2R]

I will not be changing my AA of 45:55 (equities:fixed). I would love a chance to rebalance 5% but only if it is actually rebalancing.

 

[Dawg52]

Nope. Long way to go before I [-]rebalance[/-] convert to cd's.

 

[retire@40]

I'm still a buy and hold guy.

Re-allocate based on age, yes. Right now I'm 65/35 and I plan on staying that way for another 5 years.

Sell for the sake of selling and distort my allocation, no.

 

[freebird5825]

Inertia is a girl's best friend.
any rally is welcome, but i am still fence straddling at 55/45 AA, now migrated to 50/50.

 

[Gardnr]

Heck no! 20-25% is not that far up from here. If I was going to do that I would have sold a while back. Now maybe when we get to 100% up from here I'll take some money off the table. That could be a while.

 

[Spanky]

I will think about it when the increase exceeds 56%.