Message Font: Serif | Sans-Serif
No. of Recommendations: 2
Yesterday, I placed a limit order to sell at $55.00. I know how bad (and futile) it is to try to time the market, but I don't want that order just hanging out there as HSY continues to decline

Drastically reducing your exposure to four stocks that make up 95% of the portfolio you are depending on for your retirment is not market timing, it is good common sense.

In 2000 we had 25% of our portfolio in DW's company stock. It declined 95%. Fortunately the other 75% of our portfolio enabled us to retire anyway, but don't make the same mistake.

Since your basis in HSY is what it was worth at the time of your father's death, your capital gains hit won't be so bad (I'm saying this without knowing anything about HSY's performance since then). Run, don't walk, toward diversification.

If you are not experienced at stock picking, I wouldn't rely on TMF or anyone else for advice on individual stocks. Either get into index funds, find a manager with a great long-term track record, or keep your money in cash until you have learned enough to do it yourself with confidence.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.