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| red sox 777 07/10/20 6:18:18 PM #489: | Moonroof posted... PRU and BAC wouldve made me about $1k each today but I decided to hold. Im hoping that the Financial stocks are going to start turning around and that everyone is tired of negative corona news. That's probably not the right way of looking at things. Money is made when the price of the stock goes up. Money is lost when it goes down. Actually closing the position only matters for tax purposes (and again, since you only get taxed at all when you close the position and you get penalized for closing it in less than one year, it's generally better to keep it open). Put it this way - if you had to hold a position for 30 years, would you put it in (a) some blend of stocks/funds or (b) the US dollar? You'd be crazy to choose (b) right? The last 30 years, that strategy would have lost 50% of value from inflation, and that was a period of low inflation. Meanwhile, an S&P 500 index fund is up some gigantic amount. So there should be no desire to rapidly return to the dollar. You do better by keeping more assets in stocks for longer percentages of the time. Basically only sell to buy another stock/investment or if you think there's an imminent downturn approaching. --- September 1, 2003; November 4, 2007; September 2, 2013 Congratulations to DP Oblivion in the Guru Contest! ... Copied to Clipboard! |
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