Sold all my stocks

[misanman]

Wow, maybe the stocks were tax sheltered but otherwise wouldn't there be a huge capital gains tax hit?

 

[ShokWaveRider]

Maybe like us, the OP does not need or want any stocks at this time. If you do not need them, then why have them. I do not have rental properties because I dislike the hassles of being a landlord, I do not buy an sell cars as I do not want to anymore (Been there done that), I do not own stocks because I do not need or want to.

 

[Newventurer]

F = Fear
O =Of
G = Getting
O = Out

vs

F = Fear
O = Out
N = Not
G = Getting
O =Out

Interesting how we each enable the other. I sell so you can buy, and you buy so I can sell.

And that's what makes a market!

 

[NW-Bound]

As a stock lover, I cannot imagine going to 0%.

There are always stocks to buy, and I wish I had more money like one of those billionaires so I could buy more.

When I sell, it's only so that I have money to buy when it is lower. Some people call it rebalancing, but I call it "sell high to have money to buy low". If I had unlimited cash, I would not have to do that.

 

[REWahoo]

What % of your holdings did stocks represent?

No need to respond, I found the answer in your Feb 7 post: 25%

I am not ready for implementing action for major guessing of market action to reduce my stock holdings below my 25% lower limit I am at...

 

[Jerry1]

I never understood the idea that, once out, you have to time your return to the market perfectly, as if there is only one suitable entry point that justifys ones withdrawl.

I recall an article I read which showed that, historically anyway, that there were actually only a few days where if you were out of the market, you lost out on the majority of the return. Said another way, the market tends to jump up quickly and significantly.

Personally, I wish running_man would not have posted this as I feel the same way about the market. So while I'm not getting out of the market, I guess I'd at least be singing along if he did come into Alice's restaurant with a few friends.

 

[RAE]

No name calling or stone throwing from me: market timing is a splendid strategy if you get it right! I don't have the insight to achieve this, but if Running_Man does, good for him.

Agreed. I would never criticize someone else for attempting to time the market - especially Running Man. Obviously, he follows the markets closely and has decided that the best thing for him at this time is to get out. If you don't think it is the best thing for you, then stay in. I appreciate that Running Man told us about his decision, as it gives me something to think about for myself.

 

[Hermit]

Maybe like us, the OP does not need or want any stocks at this time. If you do not need them, then why have them. I do not have rental properties because I dislike the hassles of being a landlord, I do not buy an sell cars as I do not want to anymore (Been there done that), I do not own stocks because I do not need or want to.

I am in a similar position of being comfortable without the need of my investments nor the return on my investments and probably always will be. However, I also think the stock market has a lot to do with how the economy of this country stays vibrant. I will stay in the market with a reasonable allocation for the foreseeable future.

 

[btdt22]

I'm not sure why RunningMan feels the need to tells us of his liquidation of stocks? So what?

 

[RAE]

I'm not sure why RunningMan feels the need to tells us of his liquidation of stocks? So what?

He doesn't need to tell us, but he did, and I (for one) appreciate it - especially since he follow the markets more closely than I do, and he was right 10 years ago. It all adds to the discussion, like just about everything else people post about here. You're free to simply ignore it if you don't think it is relevant to your situation.

 

[GravitySucks]

I'm not sure why RunningMan feels the need to tells us of his liquidation of stocks? So what?

Wow.
He's changing his Asset Allocation. I've posted my changes and so have many others. Running Man is telling his tale just like the rest of us.

 

[jjflyman]

+1 on selling stocks
Although I sold over the last couple years, I am 95% out of the market. I am laddering cd's and don't care about losing market returns. I have enough money to RE, and after 40 years in the market, do not want risk it anymore.
I sleep like a baby

 

[bloom2708]

Never time the market.

Unless you have $10 million and are retired. Then you can do whatever you want.

 

[4legsgood]

Never say never. Times change. Minds change. Adapt.

Thanks for sharing RunningMan. Me too, changing my AA though just a little!

 

[marko]

Wow.
He's changing his Asset Allocation. I've posted my changes and so have many others. Running Man is telling his tale just like the rest of us.

I'm not changing a thing. 60/40. I did make a small buy two weeks ago during the dip.

"More money has been lost trying to time for a correction than is lost from the correction itself" Peter Lynch

 

[GrayHare]

Personally I’ve been surprised the stock market reaction hasn’t been more strongly negative to the recent fast interest rate rises, so my instinct is that there are more shoes to drop.

Historically, equity prices have risen while low interest rates rise, up to about 5% on the 10 Year Treasury. Makes sense in that interest rates rising from very low levels reflects an improving economy, which is also good for stocks, up to a point of course.

 

[Texas Proud]

I never understood the idea that, once out, you have to time your return to the market perfectly, as if there is only one suitable entry point that justifys ones withdrawl. Having not lost a large percentage of one’s capital, I would think gives you the freedom to choose any reasonable point along the way to get back in. Seems those that make statements suggesting otherwise are expressing their own fears and what they believe to be conventional wisdom. Doesn’t mean they are right, just right for themselves.

LOL! - thanks for the quote, that made my day!

No, you do not have to be perfect to get back in.... as long as you get back in at a lower number you won....

An example... you sell everything.... after the market drops 20% you get back in, but the market continues to drop to a 50% total drop.... as long as you hang on when it comes back up you made that extra 25% (because of lower base you made more)....

 

[Senator]

Maybe like us, the OP does not need or want any stocks at this time. If you do not need them, then why have them. I do not have rental properties because I dislike the hassles of being a landlord, I do not buy an sell cars as I do not want to anymore (Been there done that), I do not own stocks because I do not need or want to.

The OP is timing the market. He obviously knows more than all of the financial gurus and most anyone that knows anything about finances.

He should be on TV.

 

[haha]

Either very prescient or stupid.
Only time will tell.
Personally, as someone who is all in, I hope for stupid.

He has been here a long time. He exposes his decisions, and he is definitely not stupid.

Ha

 

[Pilot2013]

If you don't think it is the best thing for you, then stay in. I appreciate that Running Man told us about his decision, as it gives me something to think about for myself.

This is the "herd" mentality that drives crazy markets!

Jk, do what feels right for you.

 

[haha]

I'm not sure why RunningMan feels the need to tells us of his liquidation of stocks? So what?

Mostly on this board people tell us what to do, not what they are doing, in advance, with a date stamp.

To me, RMs action is much more valuable. I too would sell more, but most of my equities are in a taxable account, and some are are long time holds and I do not want to face the certain hit of high taxes vs the contingent hit of market drawdowns. But I do have what is for me a low equity allocation of a bit less than 50%

Ha

 

[Zathras]

Good luck RunningMan!
I certainly understand the logic, however, I won't be trying to time the market.
Very happy with my allocation, through recessions or bull markets, just as I was in 2007.

I agree with you, I hope you are wrong, but one never knows

 

[Lsbcal]

As of today I am back to 0% stocks. The action of the market and the confidence of the average participant leads me to fear there is shortly to be a move of epic proportions and speed to the downside. Hopefully, I turn out to be wrong but am willing to lose a few percent to the upside to avoid the downside I fear. Last time I sold all was 2007.

I understand your feelings as I'm sort of mid-negative myself which is why I'm down from 60/40 to 50/50 as of December 1st. OK so I'm not so extreme and being still exposed makes me conflicted ... do I hope for more down so I can get back in at 60/40 and declare myself smart ... or do I hope for continued up and wish I had stuck with 60/40? Some of us cannot win in our own minds.

In the corrections of 1962 and 1987, the time from peak to a good sell point was 3 months. Will history repeat? You can easily see charts of this on Yahoo looking at the SP500 (^GSPC symbol).

One thought for you. I believe it is hard to declare yourself on these social network forums because you inevitably get people who are going to be negative towards your move. In this case it is probably because people have a vested interest in seeing the opposite outcome and they become defensive. This is a natural human instinct and some of us cannot help ourselves. But do you want to hear these negatives? I would not.

A final question if it is not too intrusive. What is your plan on getting back into stocks and what percentage would you move? Thanks for sharing.

 

[W2R]

Seems to me that there is risk no matter what we choose to do right now, and I wish you the best of luck, Running_man. I know you have thought this through because IIRC you are not one to make decisions carelessly.

As for me, my crystal ball is broken although like many here, I have a hunch that the market is on the verge of crashing. But hunches aren't facts, and despite forum lore I really don't have the slightest clue about what the market will do.

Therefore I plan to sit tight and do nothing. That worked remarkably well for me in 2008-2009 and my portfolio bounced back in less than a year, although I was still working and not spending portfolio money. Maybe I could simulate working by making no portfolio withdrawals for a while. I could do this by cutting back on spending and trying to live mostly off of SS, cash, and mini-pension.

In our forum, my perception was that there were more market timers who took big losses, than who took big gains back in the Great Recession.

 

[marko]

Therefore I plan to sit tight and do nothing. That worked remarkably well for me in 2008-2009 .

Me too. On both counts. Wasn't easy to stay calm but that's what we did.