Sell stocks or wait ?

I invested all my savings (55k) in stocks last year. My portfolio is down to 18k. I am panicking and losing sleep over it. Should i sell or wait?

Do you need the money within the next 5 years? If you don't need the money, you haven't lost anything. It's just a number on a peice of paper and it's based on emotional panicking by people and not financial fundementals.

If not, ride it out. Look at history...every 6 years or so we come into a bear market and everyone panics and says "It's never been this bad before!" But then 1-2 years later it pulls through and things are good again. Take a look at recent history:

Black Monday 1987 - markets crash headlines across North America talked about how it's the worst crash since the Great Depression.

Early 90s - one of the biggest bull markets since the Great Depression comes up.

When the tech bubble burst in 1999/2000...then 9/11, then the scandals of WorldCom and Enron and Martha Stewart in 2002. Everyone said "It's never been this bad before! Plus, one of our big financial business centers is gone! What ever will be do!"

Then by 2005 most countries were on the verge of huge rallies and bull markets and are just starting to slow down now (IE Canada is just starting to speak about a recession, and some of their provinces and still enjoying an economic boom of recent years).

What is happening right now is so bad becuase it happened to have more coincedencial things happening at the same time. Oil prices are rising, then China hosts the Olympics and shuts down all thier factories to slow down polution while the games are there. When the one of the largest population in the world, who happens to be in the beginnings of an industrial revolution, shuts down all of their largest importers of oil products for a month or so, that frees up a lot of supply and demand drops (meaning oil prices drop). At the same time, becuase the oil prices were so high, demand for gas guzzling vehicles drop because people are sick of spending more on their fuel than on thier home. Now demand for gas guzzling vehicles drop at the same time...meaning the BIG 3 who focused on SUV's and F150's for the last coupel years, start to go under. After a couple years of really solid real estate markets a correction comes along and shoots up interest rates so those people that barely qualified now can't afford it. This all happens while a country is paying for a never ending war which is the most expensive in thier history? Odds of this happening all at once were very slim and coincidental, but when it all happened at once, it was the perfect storm, that won't just go away in a day or 2.

Markets go up and down and up and down. It's a natural business cycle that's been like that for decades.

Ride it out. If the US doesn't recover from this recession, it doesn't matter what investment you are in, it will be worthless anyways and you'll have bigger things to worry about.

I think you may as well ride it out now ... it's gonna take a while to rebound, but you haven't "lost" anything unless you sell, then it's a real loss. Right now it's just a paper loss.

My attitude at this moment is that things are too cheap to sell, and too expensive to buy with all the uncertainty.

DON'T sell. Nobody ever made a dime by panicking! This thing will end, and when it does, you want to be there to keep investing for the long run.

Wait. If you sell now, you are "locking in your losses." In other words, you will never see the re-appreciation of the value of your positions.

I know it is very hard, but sit on your hands.

"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it."
Warren Buffett

"Our favorite holding [of your portfolio positions] period is forever."
Warren Buffett

Your portfolio will go back up in value; we are all in the same boat, but only uninformed investors are jumping out now. Buy low, sell high; not the reverse.

Stocks recovered after the tech bubble burst, after 9/11, and even after the great depression. It may take some years, but they will recover again.

Do nothing; just distract yourself. Otherwise, you will have lost $37,000 forever.

Theoretically, you have just used up all your savings. Just wait. The stocks might not go up today, but one day, maybe next year, they will. Just make sure the companies you invested in do not go bankrupt. How, I don't have a clue.

It depends what you invested in. If your portfolio is well spread, you should not worry. There is no way to lose all of it. Actually I think now is the best time to buy stocks since they can hardly get any cheaper.

Oh yeah, and consulting a professional in the field is the best way to go.

Talk to a tax accountant cash out what ever you can take off you taxes. Then put it into t-bills or something safe. Keep the other part in let it ride :)

Panicking will not help you.

While I am not a stock broker, calm down and think common sense for a minute.

You can cash out and take 18K, assuming no fees, and the only benefit to that is if it gets worse (and it may). OR, you can wait and maybe it'll go back to 25K, 36K, 45K after a few years.

Sure, with inflation and uncertainly, it's hard to know whether getting back your full 55K will still buy you what you did last year.

BUT, why not cash out SOME of it. And diversify somewhere else? If you get some gold, you'll probably secure a fraction of your 18K while inflation rises. So your 18K would lose to nothing. (even if 55K was left 1 penny on the dollar, you'd have 550 dollars, which you can definitely prevent by getting some gold coins today).

If you lost well over 50% you have more to worry about. Who is managing your investments? You need to worry about who is managing your money. No way you should have lost that. Do not sell now, that's the last thing you want to do.

dont sell it i mean it cant really go any lower its gotta go up eventually so wait it out

Go to an Financial Planner or Investor. But this economy is going through a rough time, it may get better and it may get worse. If it has gone down that much then I'd wait a while for it to go back up. Even if it takes a few years.

I made huge profits in my days of being a stock broker. I always made money for my clients and never lost any money for my clients. I am now an independent investor making huge profits for myself.

You are not going to like my anwser but it is the truth. Sell all you have now and allow me to advise you. My knowledge is much greater than your current advisor. I can guarantee you will make up the money you have lost and then doulbe over and over again your money.

I am up 82% this year while most investors are losing money. I have never had a losing year. It is 911 emergency you team up with me now.
The choice is yours. Choose wisley.

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