The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early CampFIRE

URL:  https://boards.fool.com/hard-to-take-profits-when-you39re-down-for-the-34093645.aspx

Subject:  Re: Trump Stock Market Collapsing... Date:  12/27/2018  2:17 PM
Author:  BruceCM Number:  880022 of 882900

Hard to take profits when you're down for the year. Seriously, that is some lame rationalizing.

Why would anyone feel compelled to 'take profits'? This is a strong indicator this 'investor' is chasing prices and doesn't know what they are doing.

If you invest for total return and a safe withdrawal during retirement and you rebalance in December, then you rebalance in December, whatever the stock market has done.

If you are still accumulating and invest for total return and do not rebalance in December, then you don't sell anything in December and you wait until your rebalancing period.

If you invest for income, as I do, the price movement is irrelevant. The dividends I will receive in December are about 3.8% greater, on the same stocks/REITS/fixed income, than I received December 2017. For me, my investments are not "Down", they are "Up", whatever their current share price may be!!

BruceM
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us