from J. Waggoner:
Investors in specialized funds need to know when to sell - USATODAY.com
I think is Decent advice on when to sell your Special sector ( Spec) funds..
It's what I've been using for several yrs in both Stocks and Funds that are more volatile.. Like:
Int'l
Bull and Bear Funds
my top 5 stocks of my Funds I buy on Margin
I don't sell My other funds that are more Diversified into many Sectors/Classes , unless they start showing "going Flat" or not doing anybetter than indexes..then it's usualy due to them getting just too big or change in Mgmnt.. and time to move on.. or in funds like CGMFX, auto sell when goes down -20%...auto sell whe it's Reit, CGMRX goes down -10%..which was triggered in Oct 5 wk.....guess I should have done the same sell guide for ALL my Funds, not just the Volatile ones...Oh well, live and learn...Buy and Hold no matter what? Not anymore My friend, not anymore..
Excerpt from his Aritcle:
"Now, if you like to speculate — and there's nothing wrong with that — then feel free to invest in highly specialized funds. But make some rules for selling before you buy. Most selling guidelines won't protect you from all losses, but they will help protect you from catastrophic plunges.
For example, if you invest $10,000 in ING Russia and lose $1,000, you'll feel foolish, but your account will live to fight another day. A 10% loss requires an 11% gain to get back even.
Lose 50%, however, and you'll need 100% to get whole again. So how do you decide when to sell?"
excatly what I did with Mathews China Fund.. once it hit -20%, sold.. and same for my Latin Fund PRLAX and my Recently purchased in April, BEAR Fund is set up to sell automatically when drops -20%...
And what do you use as a guide of when to sell them?
Investors in specialized funds need to know when to sell - USATODAY.com
I think is Decent advice on when to sell your Special sector ( Spec) funds..
It's what I've been using for several yrs in both Stocks and Funds that are more volatile.. Like:
Int'l
Bull and Bear Funds
my top 5 stocks of my Funds I buy on Margin
I don't sell My other funds that are more Diversified into many Sectors/Classes , unless they start showing "going Flat" or not doing anybetter than indexes..then it's usualy due to them getting just too big or change in Mgmnt.. and time to move on.. or in funds like CGMFX, auto sell when goes down -20%...auto sell whe it's Reit, CGMRX goes down -10%..which was triggered in Oct 5 wk.....guess I should have done the same sell guide for ALL my Funds, not just the Volatile ones...Oh well, live and learn...Buy and Hold no matter what? Not anymore My friend, not anymore..
Excerpt from his Aritcle:
"Now, if you like to speculate — and there's nothing wrong with that — then feel free to invest in highly specialized funds. But make some rules for selling before you buy. Most selling guidelines won't protect you from all losses, but they will help protect you from catastrophic plunges.
For example, if you invest $10,000 in ING Russia and lose $1,000, you'll feel foolish, but your account will live to fight another day. A 10% loss requires an 11% gain to get back even.
Lose 50%, however, and you'll need 100% to get whole again. So how do you decide when to sell?"
excatly what I did with Mathews China Fund.. once it hit -20%, sold.. and same for my Latin Fund PRLAX and my Recently purchased in April, BEAR Fund is set up to sell automatically when drops -20%...
And what do you use as a guide of when to sell them?