Is it time to liquidate investments?

I have not bought any long term stuff yet but watching closely. For me I need to see current month break previous month to start. AAPL did that Friday but it was only the 1st day of the month. If I do start adding positions my stops would be very tight as in if the current month goes back to red I'm out. Can always get back in. I control my account through TD Ameritrade (ThinkorSwim) so can get in or out several times a day if I wanted to. But if I do get in it would only be about 25% of my full size for any equity and would be adding at key points. Just my take on it but I have much more agility with my account than most do
 
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A well diversified portfolio should have you up over all. Even on a year to date basis with 40% global equities over weighted in large cap companies and 60% bonds you should be within 1% of the market high this past February. I would hate not being in the market. Given the Fed's current policy there is no other way to get passive income. Real estate is too much work. Just stay away from owning bonds from states like Illinois, NY, etc. Schools bonds and utility bonds in prosperous districts, short term have 5% coupons and increase in value as rates drop. Savings accounts and CDs are negative returns with inflation factored in. If Biden wins in the fall things could get very dicey, but we were fully invested for 8 years of Obama. Not much fun, but better than a savings account.
 
Yep. And no signs of slowing down. We are in the middle of earnings season right now and so far no real big shockers. Today I traded SPY calls twice and NVDA calls once for 3 wins. 7/7 this week on day trades :). Hope to keep this streak going.
 
sbw1 said:
View attachment 89347 A well diversified portfolio should have you up over all. Even on a year to date basis with 40% global equities over weighted in large cap companies and 60% bonds you should be within 1% of the market high this past February.
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I must admit that I'm not all that well diversified, and I'm not sure where I stand compared to this past February. I moved my account about early March and without doing a lot of digging don't have access to the statements prior to that. I know the amount I moved to the new company and I know the amount I had before everything went south because of COVID. That's my current benchmark.
 
Gofirstclass said:
I'm tickled with the gains I've been making. At the close of market today I'm 98.2% of the way back to where my account was before the market tanked.

Thank you President Trump.
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I’m up 6.6% for the year as of yesterday’s close. Considering everything we’ve been through this year - I’m very happy!
Thank you President Trump!
 
JVM225 said:
I’m up 6.6% for the year as of yesterday’s close. Considering everything we’ve been through this year - I’m very happy!
Thank you President Trump!
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Yes us too.....But what is REALLY interesting is to look at the posts from the beginning of this thread in April. Yes, I know hindsight is 20/20 but I think it is a good lesson on patience and diversity.....no, not THAT diversity! :)
 
Tolerance for risk is key. I'm all in and in the past 7 months have a bit more than quintupled my $. Yes, it's all on paper at this point, but looking good. Up 15% just today. No, I don't short stocks, nor day-trade. Just invest in what seems solid to me.

If you don't need the money right now, aren't risking all you have, have strong stomach for what can be severe downturns, it can be a great time to invest.
 
I was talking with my broker. He is not recommending piling into the market now. He is not recommending it, but he has high-net worth people shifting to a defensive portfolio in a controlled way. Some shift to cash, some to utilities, and gold. He cautioned about chasing high dividend yields.
 
My financial management is moving me to more of a cash position other than the larger dividend producers and wisely liquidated many of the muni's. They feel we need to hold until November. They are saying if the Dem's assume the helm based upon what Biden's platform is saying and his surrounding advice the market will become unstable and capital growth decline significantly; There will be a run on profit and large scale liquidation in oil and manufacturing probably before Nov or shortly after the election. History shows any run on profit or a specific market sector ripples badly across all of the indices. I tend to agree with them; too many plates spinning.
 
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We have our lake house under contract and will close in August. I plan on keeping the proceeds in cash and fixed income instruments until I see how the election goes. If Biden wins I believe there will be a substantial drop in market values until things get sorted out. The market usually does OK (some say as good or better) when the Democrats are in the White House. This time I'm not so sure as the party has become really hard left. More taxes and regulation will kill off the gains made under Trump. If Trump wins, depending on the market fundamentals, I will dollar cost average my way back to becoming fully invested with the cash from our home sale.
 
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As of market close today I'm up about 1% from the amount I transferred to the new company. That wasn't too long before the market tanked.
 
The Fed and other nation banks have injected so much liquidity into the market it is going to the only place that has a hope for return - stocks. The stock market is disconnected from the US economy, corporate earnings and the fact that Trump is trailing by double digits. If Sleepy Joe gets elected there will be a huge sell off.
My advice - sell now. Sit on cash until there is clarity. You will not lose money doing this/
 
JimT said:
The Fed and other nation banks have injected so much liquidity into the market it is going to the only place that has a hope for return - stocks. The stock market is disconnected from the US economy, corporate earnings and the fact that Trump is trailing by double digits. If Sleepy Joe gets elected there will be a huge sell off.
My advice - sell now. Sit on cash until there is clarity. You will not lose money doing this/
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I think there is a few percentage points to grab yet... look at today. But I agree I would pull out end of August or maybe September but no later
 
I bought JNJ calls today that expire in October. Also holding BAC and MCD calls in that account. That is my long term account. The rest is all cash. I only have about $2500-3000 of that account tied up at any time and am averaging about $500/week in that account. I will eventually add to my positions but for now taking smaller positions and minimal overnight risk. I never hod anything overnight in my day trade account. It's 100% cash every night.
 
Gold is well over $2000 today as well. I cannot think of a good reason other than as a defensive hedge against a fall. This is a bit of a musical chairs market right now. I may have to move out of some overbought stocks with gains and also some dogs (to offset the cap gains tax) and ride out the fall on cash equivalents. Haven't done anything yet though.
 
The XLV sector should be good the next couple of months. XLV is healthcare. UNH, MRK, JNJ, PFE, ABT, ABBV, GILD, and a few others make up the XLV. If you look at the XLV quarterly chart the 1st quarter this year was an outside candle, followed by an inside candle. This quarter has now broke above the previous quarter. As long as XLV stays above 100.54 then healthcare is still in play. Below 100.54 and it may pull back quite far so for me it's out of play below that. I bought October expiration JNJ calls today. My target is about $156. It's currently at 148ish. Hoping to hit my target in the next week or two but I have time. If it hits that in the next 2 weeks I should hit about 45% profit or so. I already have my stop and target set. Paid $438/contract. Target is at $800 and stop is at $235 (roughly $144 stock price)
 
I'm staying in for now. I'm heavier towards tech and I see some potential upside as many parts of our economy transition to remote work for the foreseeable future. Gold is a bit interesting but I worry about it being a bubble.
 
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