Selling 100% stocks on a bounce

[mathguy3021]

I've decided to sell 100% of my stocks in all investment accounts to preserve 2016 gains, and to prevent an irrecoverable loss in hard earned savings. This goes against all the rules I've learned about investing, but this time is very different so the rules go out the window. Stocks will keep crashing until this virus has peaked. I cannot wait until stocks are near zero.

[yoyo6713]

I've decided to sell 100% of my stocks in all investment accounts to preserve 2016 gains, and to prevent an irrecoverable loss in hard earned savings. This goes against all the rules I've learned about investing, but this time is very different so the rules go out the window. Stocks will keep crashing until this virus has peaked. I cannot wait until stocks are near zero.

Haha, I bet you would have jumped in way before stocks are near zero.

[Elysium]

Why wait for the bounce, you may do so at the open tomorrow. How much bounce do you think will happen, 5% at the most, but you may suffer a week of losses before that happens. If you are convinced stocks are headed to zero, and you wish to protect gains up to 2016, then you should sell immediately.

[carminered2019]

just sell it tomorrow to stop the bleeding and might as well short the market also.

[jasperhobbs]

There won't be a bounce tomorrow. Looks like another blood bath.

[celia]

You didn’t define your ‘bounce’ so I will.

I’d wait until the ‘bounce’ after we’ve finished the bear and 5 days in a row have given us a gain. No use taking unneccesarry losses now.

[greenspam]

If you are so certain stocks will continue to crash,
Not only should you sell all your stocks,
You should also ‘short’ the market by buying (for example) the ETFs
PSQ (inverse of QQQ) and/or SPDN (inverse of S&P 500)
There are also ETFs that magnify stock market losses, for example SQQQ which is 3X the inverse of QQQ.

Good luck all, and stay healthy and safe !

As always,
Peace,
Greenie

[greenspam]

...I did... up about 10% so far on SPDN and PSQ

[mathguy3021]

A bear market bounce is a positive reaction to short term news that lifts stock prices temporarily. Investors who are short sighted will say that it's too late to sell because of the recent crash. The reality is that in my case, it's equivalent to moving to a much safer allocation after gains in 2016. My net worth has grown from under six figures in 2009 to over 7 figures earlier this year. Most of that was due to the stock market gains. There is nothing wrong with becoming a much more conservative investor at this time to preserve those many years of gains.

[celia]

I cannot wait until stocks are near zero.

Do you really think all the stock in your mutual funds or ETFs will go bankrupt? Do you think even 1 will? (I’d believe 1 or 2, but not ALL of them.)

[nps]

Investors who are short sighted will say that it's too late to sell because of the recent crash. The reality is that in my case, it's equivalent to moving to a much safer allocation after gains in 2016.

Investors who are short sighted also rationalize their panic selling in down markets.

[tvubpwcisla]

Can I please purchase them from you?

Most, if not all, of an investor's gains are made during the worst crashes in the history of the stock market.

[celia]

There is nothing wrong with becoming a much more conservative investor at this time to preserve those many years of gains.

True, but isn’t 100% a little extreme? Do you think your portfolio should be 100% bonds/cash (which is what you’re planning)?

If you do sell, I’d like to buy your stock funds too!

Please list them so we can shop.

[mathguy3021]

I cannot wait until stocks are near zero.

Do you really think all the stock in your mutual funds or ETFs will go bankrupt? Do you think even 1 will? (I’d believe 1 or 2, but not ALL of them.)

I don't think the stocks will go bankrupt. The companies that I own are high quality companies, but the current market movements are not tied to the fundamental health of US businesses. I understand restaurants and airlines will suffer, but the broad market is crashing due to a virus pandemic and will continue to do so until there is some news of improvement. I didn't say stock will go to zero. I simply cannot wait for stocks to keep crashing down at this rate. It is the rate of the free fall that I'm concerned about. I think stocks will recover eventually, but as I said before, I cannot wait for the bottom of a great depression. That is too much of a loss for me to handle. I was prepared for a bear market, not a depression in stock prices.

[carminered2019]

There is nothing wrong with becoming a much more conservative investor at this time to preserve those many years of gains.

True, but isn’t 100% a little extreme? Do you think your portfolio should be 100% bonds/cash (which is what you’re planning)?

If you do sell, I’d like to buy your stock funds too!

Please list them so we can shop.

I think he already made up his mind based on another thread.

[MotoTrojan]

I was prepared for a bear market.

No you weren't. People thought the world was ending in 2008 too. I hope you find peace in your decision.

[sd323232]

A bear market bounce is a positive reaction to short term news that lifts stock prices temporarily. Investors who are short sighted will say that it's too late to sell because of the recent crash. The reality is that in my case, it's equivalent to moving to a much safer allocation after gains in 2016. My net worth has grown from under six figures in 2009 to over 7 figures earlier this year. Most of that was due to the stock market gains. There is nothing wrong with becoming a much more conservative investor at this time to preserve those many years of gains.

you dont have to prove anything to people on this board. do what you think is right for you.

[mathguy3021]

I was prepared for a bear market.

No you weren't. People thought the world was ending in 2008 too. I hope you find peace in your decision.

This is very different from 2008. I was almost 100% in stocks through the 2008 financial crisis. If I had the same net worth back then, I would maintain my asset allocation. The free fall in stock prices that we see today is not normal behavior in bear markets. The rate of the fall that we see today is far from normal in bear markets. That is proof that this time is VERY different.

[Wiggums]

I've decided to sell 100% of my stocks in all investment accounts to preserve 2016 gains, and to prevent an irrecoverable loss in hard earned savings. This goes against all the rules I've learned about investing, but this time is very different so the rules go out the window. Stocks will keep crashing until this virus has peaked. I cannot wait until stocks are near zero.

You are free to sell, but I don’t agree with your conclusion that stocks will be near zero. Things are shutting down to limit the spread of the virus. The global health crisis is real and far reaching. The markets need positive news regarding the virus, stronger leadership actions and medical supplies to limit the spread. I’d like to see daily press conferences that contain new, detailed information. The markets will recover long before the people are all vaccinated.

[whodidntante]

There won't be a bounce tomorrow. Looks like another blood bath.

Blood is mostly water, and water doesn't compress. So if OP dives right in, there might be a bounce.

[ThePrince]

Investors who are short sighted will say that it's too late to sell because of the recent crash. The reality is that in my case, it's equivalent to moving to a much safer allocation after gains in 2016.

Investors who are short sighted also rationalize their panic selling in down markets.

+1

[HEDGEFUNDIE]

I was prepared for a bear market.

No you weren't. People thought the world was ending in 2008 too. I hope you find peace in your decision.

This is very different from 2008. I was almost 100% in stocks through the 2008 financial crisis. If I had the same net worth back then, I would maintain my asset allocation. The free fall in stock prices that we see today is not normal behavior in bear markets. The rate of the fall that we see today is far from normal in bear markets. That is proof that this time is VERY different.

You’re wrong.

In October 2008 the S&P 500 fell 25% over eight trading days.

It then fell another 23% before reaching bottom

What we are seeing now is not unprecedented at all.

[mathguy3021]

I was prepared for a bear market.

No you weren't. People thought the world was ending in 2008 too. I hope you find peace in your decision.

This is very different from 2008. I was almost 100% in stocks through the 2008 financial crisis. If I had the same net worth back then, I would maintain my asset allocation. The free fall in stock prices that we see today is not normal behavior in bear markets. The rate of the fall that we see today is far from normal in bear markets. That is proof that this time is VERY different.

You’re wrong.

In October 2008 the S&P 500 fell 25% over eight trading days.

What we are seeing now is not unprecedented at all.

The S&P 500 crashed 32% in one month and will crash this week. When have we seen close to a 40% crash in one month aside from the great depression?

[HEDGEFUNDIE]

I was prepared for a bear market.

No you weren't. People thought the world was ending in 2008 too. I hope you find peace in your decision.

This is very different from 2008. I was almost 100% in stocks through the 2008 financial crisis. If I had the same net worth back then, I would maintain my asset allocation. The free fall in stock prices that we see today is not normal behavior in bear markets. The rate of the fall that we see today is far from normal in bear markets. That is proof that this time is VERY different.

You’re wrong.

In October 2008 the S&P 500 fell 25% over eight trading days.

What we are seeing now is not unprecedented at all.

The S&P 500 crashed 32% in one month and will crash this week. When have we seen close to a 40% crash in one month aside from the great depression?

How do you know it will crash this week?

Heck, how do you even know it will crash tomorrow?

Unless you tell me you are exposed to the market through futures, you haven’t lost anything since Friday at this moment. You have no idea how the market will do tomorrow, this week, or this month.

[bgf]

OP, stocks arent for you. sell every stock you have and find a comfy high yield savings account. spread everything out so that you're fully FDIC.

never lose a wink of sleep again.

[Bfwolf]

Mathguy, may I gently suggest you read yourself critically.

A rapid decline in stocks is not unique. This decline has been very rapid but as pointed out 2008 was incredibly rapid as well.

The absolute decline here is nowhere near record levels.

Every stock market crash is unique in its own way--that's how people like you rationalize that this time is different. But the economy is unlikely to crumble. Remember that this social distancing which is wreaking the economic havoc is a choice that policy makers have made and can unmake if the economic damage becomes bad enough. 2008 was much scarier because there was real existential doubt about whether the financial collapse would cause economic collapse.

You said yourself that if you had now the net worth you had in 2008, you would do nothing. As such, you WEREN'T prepared for a bear market. You were prepared for a bear market if you had the same risk tolerance as 2008 you, but 2020 you has much more to lose and less time to get it back. You simply had too much in stocks and now you're capitulating. Or perhaps you were prepared for a gentle bear market where the stock market goes down 25% over 6 months. But dramatic, steep market crashes are what you have to be REALLY prepared for, and you weren't.

You have to do what's best for you. I'm not trying to be argumentative. If you can't sleep at night, then that's a real problem. But don't act like this is some sort of extra scary, once-in-a-lifetime bear market. This is a many times a lifetime bear market.

[watchnerd]

I've decided to sell 100% of my stocks in all investment accounts to preserve 2016 gains, and to prevent an irrecoverable loss in hard earned savings. This goes against all the rules I've learned about investing, but this time is very different so the rules go out the window. Stocks will keep crashing until this virus has peaked. I cannot wait until stocks are near zero.

I will be happy to buy all your shares.

And buy more as we get "near zero".

I will add them to my collection of shares and love them in their new forever home.

[MotoTrojan]

The S&P 500 crashed 32% in one month and will crash this week. When have we seen close to a 40% crash in one month aside from the great depression?

This tells me nothing about the severity of this compared to other crises, only that this crisis advanced on us more quickly than the financial crisis, which took some time to work it's way to the surface. I would expect that of a virus related incident, so that doesn't come as a surprise to me.

If you think the severity will be worse as well, then that is your own opinion/gut (the market disagrees, so far) but the rate of decline is not a great indicator IMHO. If anything, it just makes it more likely that the market acted irrationally as it didn't have countless quarters to evaluate earnings and really understand what was happening.

[mathguy3021]

We have a long way to go before the bottom is reached. As I said before, I was prepared for a bear market, not a depression. This is not panic selling or capitulation. This is a well thought out decision to preserve gains. Most people didn't do as well as I did in the stock market so I am sitting on a huge gain even after the market crashed 32%. By selling, I'll be locking in my outperformance and moving to a much safer allocation for my age.

[watchnerd]

We have a long way to go before the bottom is reached. As I said before, I was prepared for a bear market, not a depression. This is not panic selling or capitulation. This is a well thought out decision to preserve gains. Most people didn't do as well as I did in the stock market so I am sitting on a huge gain even after the market crashed 32%. By selling, I'll be locking in my outperformance and moving to a much safer allocation for my age.

Yes, sell, I want all your shares.

MUAHAHA.

[HEDGEFUNDIE]

We have a long way to go before the bottom is reached. As I said before, I was prepared for a bear market, not a depression. This is not panic selling or capitulation. This is a well thought out decision to preserve gains. Most people didn't do as well as I did in the stock market so I am sitting on a huge gain even after the market crashed 32%. By selling, I'll be locking in my outperformance and moving to a much safer allocation for my age.

You may also be locking in your losses if the market shoots back up unexpectedly.

Or are you going to tell me that would be unprecedented as well?

[watchnerd]

We have a long way to go before the bottom is reached. As I said before, I was prepared for a bear market, not a depression. This is not panic selling or capitulation. This is a well thought out decision to preserve gains. Most people didn't do as well as I did in the stock market so I am sitting on a huge gain even after the market crashed 32%. By selling, I'll be locking in my outperformance and moving to a much safer allocation for my age.

You may also be locking in your losses if the market shoots back up unexpectedly.

Or are you going to tell me that would be unprecedented as well?

No, stop trying to talk him out of selling.

I want his shares....

[denovo]

Investors who are short sighted will say that it's too late to sell because of the recent crash. The reality is that in my case, it's equivalent to moving to a much safer allocation after gains in 2016.

Investors who are short sighted also rationalize their panic selling in down markets.

+1

+10

[HEDGEFUNDIE]

We have a long way to go before the bottom is reached. As I said before, I was prepared for a bear market, not a depression. This is not panic selling or capitulation. This is a well thought out decision to preserve gains. Most people didn't do as well as I did in the stock market so I am sitting on a huge gain even after the market crashed 32%. By selling, I'll be locking in my outperformance and moving to a much safer allocation for my age.

You may also be locking in your losses if the market shoots back up unexpectedly.

Or are you going to tell me that would be unprecedented as well?

No, stop trying to talk him out of selling.

I want his shares....

Mathguy has already made up his mind and is just trying to justify his decision.

I’m just here to encourage others not to copy his mistake.

[watchnerd]

Investors who are short sighted will say that it's too late to sell because of the recent crash. The reality is that in my case, it's equivalent to moving to a much safer allocation after gains in 2016.

Investors who are short sighted also rationalize their panic selling in down markets.

+1

+10

+100!!

Conan, what is best in life

Conan: To buy from weaker hands, take their shares, and to hear the lamentations of their statements!

[surfstar]

A few more of these threads and maybe we'll have reached the bottom!

[Enzo IX]

There won't be a bounce tomorrow. Looks like another blood bath.

Blood is mostly water, and water doesn't compress. So if OP dives right in, there might be a bounce.

Your sarcastic humor cracks me up.

[watchnerd]

A few more of these threads and maybe we'll have reached the bottom!

By next Fri, I expect 3x the number.

[mathguy3021]

Preventing a life changing loss is FAR more important than big unecessary gains in the market. If I can live comfortably on my current net worth, but cannot afford to lose, I'll give up gains to be financially independent.

[BigDrop]

Interesting posts on here. I am old and have a few memories. Coincidentally, in my industry I did a lot of primary research from people I met in the ‘70’s who were owners and managers in the 1920’s.

There was a fear of going broke not a fear of dying in ‘30.

In ‘87 and ‘08 the same was true. But today we’ve added a fear of crowds, of groups and will it really be over. From a stadium to a park to a restaurant this time is different. Whether people have the money or not will they really want to come back?

Will you really want to shake a hand, hug or share a bite? It’s different now. It’s not about a dollar-it’s about our lives.

[Enzo IX]

Well at least the OP is telling everyone what he's doing even though he/she knows they are going to get trashed on.

CNBC reports even usually the rocksteady Vanguard Group is reporting billions of dollars of redemptions.

You people aren't doing the "Pump and Dump on me", are you? I will be pissed.

[BigDrop]

Stock futures are limit down. The Dow will open in the 17000’s, pre Trump. Bloomberg news tonight-right now-is extraordinary to watch.

[carminered2019]

Stock futures are limit down. The Dow will open in the 17000’s, pre Trump. Bloomberg news tonight-right now-is extraordinary to watch.

DOW 17,000 is another trigger point for me.

[2pedals]

oh hum and yawn -- the selling out, changing course now posts and why it perfectly makes sense are getting tiresome.

[frugaltigris]

And after that bounce there will be recollapse and another bounce and a recollapse ... We do not understand "the laws of physics" of these cycles. When do you re-enter? You are probably gambling. You might be lucky or not.

[Valueinvestor2]

I've decided to sell 100% of my stocks in all investment accounts to preserve 2016 gains, and to prevent an irrecoverable loss in hard earned savings. This goes against all the rules I've learned about investing, but this time is very different so the rules go out the window. Stocks will keep crashing until this virus has peaked. I cannot wait until stocks are near zero.

Lol. “This time is different” lol.

I hope you are just a troll and not actually doing what you are saying. Now is the time to be buying or holding stocks. Not selling.

Please, please just be a troll.

[mathguy3021]

I've decided to sell 100% of my stocks in all investment accounts to preserve 2016 gains, and to prevent an irrecoverable loss in hard earned savings. This goes against all the rules I've learned about investing, but this time is very different so the rules go out the window. Stocks will keep crashing until this virus has peaked. I cannot wait until stocks are near zero.

Lol. “This time is different” lol.

I hope you are just a troll and not actually doing what you are saying. Now is the time to be buying or holding stocks. Not selling.

Please, please just be a troll.

Let me make one correction. I will be selling 100% in my retirement accounts, and tax loss harvesting the taxable account. I cannot afford the huge capital gains tax from selling all stocks in my taxable account since I'm sitting on huge gains after this crash.

[frugaltigris]

if you are selling in taxable for TLH why sell at the bounce? you can sell any where in the falling market and TLH down the hill. Selling at a local maxima will reduce TLH benefit.

[cost.basis]

OP wants to lock in his 2016 gains. So, why is that a bad thing? He could lock in his gains and DCA back in the market as it stabilizes.

[Bfwolf]

You people aren't doing the "Pump and Dump on me", are you? I will be pissed.

Genuine LOL from me