[USER]

I am all cash right now. I sold all my stocks 1 month ago and did not re-invest the money because I fear a major market crash coming up in the next 2 weeks (election, war, etc…). Does anybody agree with me

Given the current economic climate and concerns about a potential market crash, do you believe it is a good idea to sell all stocks now?

Some argue that liquidating stocks early can protect against major losses, while others believe that holding onto investments during downturns can lead to better long-term gains.

We’d love to hear your thoughts!

Are you in favor of selling off stocks to minimize risk, or do you prefer holding onto them in hopes of market recovery?

What factors would influence your decision (e.g., market trends, personal risk tolerance, or historical performance)?

If you’ve faced a similar situation before, how did you approach it?

Feel free to share your perspective on whether now is the right time to sell, hold, or even invest further in the market!

[Matthew]

Last 25 years the S and P returns were 8.29% per year CAGR which is what matters not average. if you invest in HBND.U for example
It’s 20-30 year treasury bond with 50% or less covered call ETF and yields 10.31% right now…

I’m with you why invest in the market when you can get over 10% in fixed income.

[Steve]

No. I’m still waiting on the recession predicted 3 years ago… it’ll happen any day now… I’m sure…

[Mark]

I hope the market crashes. volatility is what makes money.

[Scott]

Why didn’t you just put in stop orders? No the market is not crashing in two weeks.

Fear based decisions never mix well with investing.

[RE]

How much were you at with stock? Just curious. A very small portfolio amount may not make much of a difference.

[Becca]

I was raised poor and on food stamps. So, I understand the fear of being reliant on the government and how powerless that feels.

Stay the course and diversify.

[Niloufer]

No. It is best to have a diversified portfolio to protect against market risk. Also, consider the tax bill if you have any capital gains on such a drastic sell.

[Alyssa]

The Stacking Benjamin’s Podcast researched how people would have done with 10K if they had their money in only with a democrat vs republican president or kept it in and let it ride for 50 years.

I don’t remember exact numbers but it was about 100K for Republicans, 500K for democrats and 1.5M if you just let it ride.

You’re committing the number one cardinal sin of investing, timing the market.

[Daniels]

No because a lot of my positions have dividends that reinvest.
Also depending on your account, you just triggered taxable events.

This is just bad thinking all around.

[Etore]

I sold all my stocks and bought alpacas. its been years and they are due!

[Jedu]

Believe it or not it is already priced in. Regardless who will win. Election happens every 4 years, it’s not like it is random.

[Aaron]

No, this exactly why the average investor underperforms the benchmarks. They make mistakes like this.

Even if you’re “right” and the market drops, when will you know to get back in?

You can’t win at this game long term.

[Dave]

Depends on where you are at retirement wise, and the rest of your asset mix – and what you mean by “cash”.
I Most of my net worth is in RE.

I don’t like equity valuations and almost all of my non-RE is in TBills.

I’ve missed out on the big run up but my RE has beaten equities.

I consider this to be a prudent asset allocation between risk/no risk for my position as semi-retired.

[Mark]

It’s possible. What is your “cash”? During the financial crisis of 2008/09 there were investors lost money in what they thought were “cash” equivalents.

[Johnny]

The Market have survive, Wolrd Wars, pademics, natural disasters and the only thing have done is continue breaking records and creating more millioners, have been like that for more than 100 years.

Companies are not build to lose.

[Andy]

I went all cash this past summer when I realized my diversified portfolio was about half the gains of the S&P500 for the year.

I started a wheel strategy and have been catching up! If I crashes I will catch up really fast.

If not, I’ll keep selling puts and calls to close the gap.

This takes a lot more effort, but it’s worth it.

[Tom]

No, we are buy and hold investors. Up 20.4k in the last month. Is it possible there might be a correction?

Sure, but that would allow me to do a larger Roth conversion.

[John]

It appears that you haven’t considered the possibility that the market is ok with either candidate winning, in which case the ‘uncertainty’ portion wouldn’t matter.

[Mike]

Was at 20% cash, now a bit over 30% Wanting to be at least 50% by election time Will use stop loss on the others

[Author]

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