Yes, I sold my individual stocks in this booming stock market. Do I regret it? Not at all.
Why I Sold My Individual Stocks
The stock market isn’t tied to reality. There are millions of Americans out of work, protests and riots throughout America, and companies pulling their guidance about their earning this year yet the various markets are hitting records.
When I saw how the markets continue to go up and up (even though it did have its downturn when the shelter-in-place started months ago), I decided to sell my individuals stocks. It appears the Federal Reserve is keeping the stock market afloat and eventually they will stop. And when that happens, the markets will drop and people will lose money.
I’m Still In The Market, However
I can’t remove myself from the stock market because I’m still investing in my 401(k). My employer matches my contribution so I will continue to take that free money.
Since this is retirement money and I’m no where near retirement age, I’m going to allow that investment to ride. Yes, I still believe the markets may drop later this year but I can’t do anything about my 401(k).
Lastly, I won’t buy any more individual stocks. Following Warren Buffet’s rule of buying what I know, I made a good profit from my individual stock choices after holding them for years.
I Sold My Individual Stocks And Will Save That Money
I took my profit from selling my stock and transferred the cash into one of my savings account. Of course the return will not be as good as the one from the stock market, but I rather have cash at this point. Other wealthy people are sitting on cash at the moment too because they know something is up with the markets.
Be Cautious Investing In The Stock Market Now
I tell anyone that is interested in investing in the stock market right now to be cautious. Some are buying stocks when they are at their highest, and there’s a possibility those stocks will not continue to rise. Thus, you could lose a good portion of your investment if the stocks were to fall and fall.
Finally, don’t time the market. You can’t. When I sold my individual stocks on June 5, the markets went on a tear the next few days. While I sold my stocks when they were up, they increased more in value the following days. Am I mad about that? No, because I’m not greedy. I made my profits.
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