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Author: greenmartianV Big gold star, 5000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19309  
Subject: Re: The urge to sell everything--resist? Date: 12/31/2009 12:50 PM
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All things in moderation?
How is everyone else handling all the push and pull of good and bad news?


fwiw, I try to ignore it. Seriously. It doesn't do anything but make me scared and it usually doesn't help. For example, what area in retail would you suspect - going into 2009 - would do the worst? Home, right? Had the worst news associated with it surely. And what area did best in 2009? You guessed it - home. Crazy world.

That said, if you are worried there are a few options:

1 - include a fixed income portion in your portfolio. More and more I think Graham's advice to hold a min of 25% permanently in this subsection (intelligently chosen) with more depending on circumstance seems right on target. Think the other poster in this thread is dead-right. At the least, should relieve one of the burden of worrying too much cause something will always be shielded from stock market fluctuations. And if the market goes up, you'll still participate.

2 - intentionally weight your portfolio more to stalwarts, those diversified companies with international presence whose stocks price almost never fluctuate as much as other stuff (if chosen correctly). Allows you to participate in the market without as much craziness in stock gyration (though as we know no stock is immune to crazy dips and rises).

I can't recall a time where I was 100% comfortable with my portfolio and I have to continually resist the urge to sell everything and start over. That said, if by a decision by decision basis I'm liquidating, that's ok with me, but global decisions to do this or that in unison have always been dead wrong - usually stupid - for me.

anyway, just 2c....
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