For the first time ever I sold all my stocks

[RetiredAtThirty-eight]

If we're trading old sayings, how about "If you've already won, you don't need to keep playing the game".

I'm surprised this needs to be said but investing is not a pass/fail or win/lose game. I'll be investing as long as my mind is still sound.

 

[harley]

I couldn't disagree more. What you choose to do is up to you, but that's a choice. Just like working if you're FI. Nobody should judge you, but neither should you judge. Stopping investing when you don't need the money is a totally legitimate and often recommended option.

 

[aja8888]

I couldn't disagree more. What you choose to do is up to you, but that's a choice. Just like working if you're FI. Nobody should judge you, but neither should you judge. Stopping investing when you don't need the money is a totally legitimate and often recommended option.

I'm with you on this. We won the game and at our ages, everything is paid for, willed out for future use by heirs, and we are comfortable with 15% in equities, mostly high quality preferreds. The other 85% is a mix of cash, bond funds, CD's, and real estate.

My biggest worry these days is my golf handicap.

 

[RetiredAtThirty-eight]

I couldn't disagree more. What you choose to do is up to you, but that's a choice. Just like working if you're FI. Nobody should judge you, but neither should you judge. Stopping investing when you don't need the money is a totally legitimate and often recommended option.

You misunderstood me. I didn't say you couldn't decide to stop investing, I said investing was not a win or lose, pass or fail kind of activity. The results run the entire range.

By many peoples metrics I've already "won" but I choose to continue to invest.

 

[2177V]

No. There are a small minority of winners who tend to brag... they often fade away after their 15 minutes of fame. Then there are winners who don't brag and are relatively humble given their great accomplishments and they tend to stand the test of time.... like Tom Brady and the New England Patriots or Derek Jeter and the NY Yankees, as examples.

"It ain't bragging, if you can do it" Quote from Dizzy Dean.

I already purchased some equities at discounted prices during this bear market to set me up for the subsequent bull market. After 5 or more years of the subsequent bull market, I will wait until the yield curve inverts and/or see if the billionaires have increased their cash position. If the market is above my risk tolerance, I will then reallocate from equities to a long term treasuries bond fund such as VUSUX so I can avoid the next potential bear market just like I did in 2020.

If that do happen...be prepared for a whole lot of bragging. I may not be classy or humble but I will be richer. As I stated before, avoiding a bear market can make a HUGE difference in your portfolio.

 

[audreyh1]

A good question indeed!

Short term bond funds for now, and I will hunt around for 1-3 year CD's that have rates that approach the inflation level.

Part of my reasoning is that this CV19 pandemic may not go away as quickly as we would like and thus our recession may hang on longer producing a questionable investment market. I just don't see quality bonds being a good bet these days. I may be wrong.

It’s seems that if it goes on longer than expected that would be an incentive to hold on to medium and long bonds unless you were holding lower credit quality bonds.

 

[OldShooter]

... I may not be classy or humble ...

Agreed.

 

[pb4uski]

+1

 

[COcheesehead]

It’s seems that if it goes on longer than expected that would be an incentive to hold on to medium and long bonds unless you were holding lower credit quality bonds.

+1 My long term bonds have been rather nice to have over the last few years.

 

[VanWinkle]

I am a billionaire. But in Korean Won. Winners tend to brag. It is really human nature. You see that in sports a lot. Sport fans, who did not win, do not like it either.

Ok, that explains everything, no offense taken from your remarks.

 

[bmcgonig]

"It ain't bragging, if you can do it" Quote from Dizzy Dean.

I already purchased some equities at discounted prices during this bear market to set me up for the subsequent bull market. After 5 or more years of the subsequent bull market, I will wait until the yield curve inverts and/or see if the billionaires have increased their cash position. If the market is above my risk tolerance, I will then reallocate from equities to a long term treasuries bond fund such as VUSUX so I can avoid the next potential bear market just like I did in 2020.

If that do happen...be prepared for a whole lot of bragging. I may not be classy or humble but I will be richer. As I stated before, avoiding a bear market can make a HUGE difference in your portfolio.

Not classy, nor humble, possibly rich but definitely boring.

 

[Golden sunsets]

Not classy, nor humble, possibly rich but definitely boring.

Actually, I think his entire diatribe is quite entertaining.

 

[target2019]

Not classy, nor humble, possibly rich but definitely boring.

+1
Consider this a re-tweet.

 

[MichaelB]

Everyone’s had their say. How ‘bout dropping the personal comments and getting back to the thread topic.

 

[WhenIsItTime]

I disagree. Most famous market timers are billionaires. [Have to agree that is a good way to get famous] They just know how. Most people don't.

Example...Bill Achman recently made $2 billion shorting the market.

Ask Bill Ackman how he did on Herbalife. In that case he was probably right, but still lost a ton of his personal effort and money. He was also pretty dramatic during Covid. Dude needs to narrow his emotional highs and lows.

 

[Rianne]

I am in my late 60s and I have been buying mutual funds for almost 40 years. I have had a stock fund/bond fund allocation that I have stayed with through thick and thin--through all the recessions, through 9/11, etc. But today I sold all my equities and moved the money to a money market fund for now (it was all in my IRA so no tax consequences). I have never been a market timer but there is something about the market now that just does not seem right to me. I recouped all most all my losses from March and April and just got out. I don't see anything good to come in the near future and at my age I just decided to not take any more risks.

I will decide what to do with all the money market funds in the near future--CDs? Bonds? Treasuries? but I just don't think stocks are the right place for me to be now.

OP, We are somewhat similar (the bold part). The difference, most of our tIRA are bond funds. Did you, by chance, figure out the tax consequence of the sale of your equities(I realize they were in your IRA)? Again, most of our equities are taxed yearly but I have no idea what the tax consequences would be if we sold our equities. Plus, we're on ACA, so we couldn't possibly do that today...but if HC were to change (we'll be 65 in 3 years) to something affordable. Not getting political.

 

[TechLead]

I look at historical S&P 500 dividend and historical inflation/ Fed Interest Rates through years of 1930-1950.

For most years one would collect 70-90% if 1930 dividend though there are couple of years where dividend is about 60% of 1930 payout. Those are inflation/deflation adjusted dividends.

Meanwhile cash lost most of its value and Fed rates were 0% or pretty close to 0% just like today. Those are years similar to what we see today. Fed pretty much inflated US out of historically very high debt. So good luck holding cash

Not to mention tax bill that such sale would generate.

 

[harllee]

OP, We are somewhat similar (the bold part). The difference, most of our tIRA are bond funds. Did you, by chance, figure out the tax consequence of the sale of your equities(I realize they were in your IRA)? Again, most of our equities are taxed yearly but I have no idea what the tax consequences would be if we sold our equities. Plus, we're on ACA, so we couldn't possibly do that today...but if HC were to change (we'll be 65 in 3 years) to something affordable. Not getting political.

OP here, everything I sold was in my IRA so I did not need to look at tax consequences.

 

[Murf2]

Ask Bill Ackman how he did on Herbalife. In that case he was probably right, but still lost a ton of his personal effort and money. He was also pretty dramatic during Covid. Dude needs to narrow his emotional highs and lows.

I’m sure he was concerned about us stock holders and in no way trying to manipulate the market. [emoji23]

 

[COcheesehead]

I’ve read on here and elsewhere that some were suggesting to buy back in after the expected, horrible 2nd quarter results. So here we are. Who’s buying in now?

 

[gayl]

I recognized my error and fully reinvested May 8th. All I did was lock in a 5% drop from where I would be if I did nothing. Back to:
89% stocks
6% CDs
5% Bonds

 

[targatom2019]

most that sold before March are waiting for the market to calm, dust to settle or a vaccine before jumbling back in.

 

[COcheesehead]

Ring a bell when it’s all clear. LOL.

 

[TechLead]

most that sold before March are waiting for the market to calm, dust to settle or a vaccine before jumbling back in.

Once that news is here what will be S&P 500 value that they will jump back to?
Many sold *during* March.

Pretty much everything went up since March except cash. (Dollar index is down 10%) Don't hold your breath for S&P 500 to go under 2300.

 

[Lawrencewendall]

Today, I bought some GEO (18% forward looking returns)and ATAX (6% federally tax free forward looking returns). Gimme those dividends! Dollar cost averaging.