Is a long-term investor supposed to sell now?

Question

People are telling me to bail. I do NOT want to jump into panic-selling. What do you think? I currently have $598,000.00

started with $655,331.00 in Jan of 07.

Vanguard index fund...healthcare.....oil co. suppliers...mining

energy some wireless tech. B of A is only financial. A few other sectors.

Answer 1

Invest like Warren Buffett,the worlds richest man .

   buy value

Answer 2

I don't think so.  We are down about 20% from the peak.  Based on past bear markets, it is likely that we have dropped more than half of the eventual decline. Timing the market is a loosing approach. If you are a long-term investor, ride it out. Hopefully, you have some cash to take advantage of some of the great buys that are being developed. As the wise addage says, "buy when the blood is running in the streets." I am a 20+ year investor and rode out the bear market of 1997. It is painful and scary at times but in the long run, you will win. BTW, I have some similar holdings.

Answer 3

Please DO NOT sell just because your investments have gone down for the past year.  But do sell if you are over-invested in some area, and put the money into places where you are under-invested.  The ups and downs of the market for the past 30 years are just barely a hint as to what it might do in the future.

The only reasons I sell investments is to re-balance, once or twice a year, or when I need the money for current expenses.

Unlike some people, I include equity in my house as part of "fixed investment", along with bonds and other real-estate.

The bond / equity ratio is adjusted (slightly) based on my age and the past 5 years of volatility history.  I also keep 9 or 12 months of expenses in cash (money market).  Job income is counted only for the next 3 months; I would not count it all all if it was not very secure.

Answer 4

Lone term investors should never sell into a market like we are having.  Since you bought some of the stocks for the long haul you could sit it out especially if the companies are paying dividends.

The buy & hold mentality has been loosing alot of respect within the decade.  Granted Buffett & Graham made money but the markets where entirely different then they are now.

The markets then did not have computerized investing, hedge funds, and a large number of funds to compete with,

Many amateures and naive thinkers will still follow Buffett, but many other investors have moved on.

When you hold any security and you have a decent profit you should give consideration of getting out or at least place a sliding stop order to protect & lock in profits, if the stock drop substantially you can alway go back in and buy again but you would have profits in your pocket.

If you have some losses and your holding value stocks, you can wait this market out

Answer 5

Hang on for a couple years if you can. The market is going down a little more before it will turn. In a couple of years hopefully it will be back to normal.

Answer 6

My advise would be to sell approximately 20 percent of my position.  Place it in cash.  There may be rocky roads ahead. My thought is you need to have a "sleep at night" cushion.  Cash is O.K.  But, I think, you should keep it in your account. Unless you have a consumer debt you want to retire.  Good luck.  Vanguard is an excellent family of fund managers. Don't hold mutual funds, personally.  But, I think you will be fine.  Still a larger cash position is warranted until the market settles out.

Answer 7

Now is the worst time to sell, we're almost at the very bottom. When people are all panicking and telling you to sell, that's a great time to buy. When everyone is buying and all the stocks are overinflated thats the time to sell.

Wait it out, there might be one more drop and then things should start heading back up.

Answer 8

18 months is not long term.  If you're a long term investor you need to be prepared to stay in for ten years or more.