Investing

Anyone else selling and moving to cash?

  • Last Updated:
  • Oct 26th, 2018 3:59 pm
[OP]
Deal Addict
Oct 14, 2004
1316 posts
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Toronto

Anyone else selling and moving to cash?

Anyone else thinking about selling and moving to cash? I am beginning to think that I should slowly sell (~5% per month) because it feels like we are heading into a fairly difficult time.
92 replies
Deal Addict
Dec 13, 2010
1277 posts
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ON
I'm wondering the same thing but I haven't really been confident enough to execute yet.
Deal Addict
Jul 23, 2007
3565 posts
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No. Why would I do that?

If the markets happen to go down, I'll be just be doing the same as I do now. Buying whenever I have any cash available for investment. I've been doing the same for the last three and a half decades and it's served me well. I don't even try to time markets or avoid downturns. I do like stock market bargains though.
Deal Guru
Mar 20, 2003
10129 posts
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Moncton, NB
I see no need, if it goes down I'll just invest more and lower my cost average.
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Dec 14, 2010
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James_TheVirus wrote:
Sep 30th, 2018 9:46 am
Anyone else thinking about selling and moving to cash? I am beginning to think that I should slowly sell (~5% per month) because it feels like we are heading into a fairly difficult time.
No. First, I would never make a decision based on emotions. "Feeling" that we are heading into difficult times has no supporting data to predict what will happen next. As an investor, I like to tag along on good quality companies that were purchased at a decent price. It's the CEO's job to figure out how to grow his business if we indeed head to difficult times. Not ours. Ours is just to allocate capital to these businesses (by doing all research lon what to buy, why buying it and when to buy; or simply indexing to get our exposure to equities). We can't control the decisions that these businesses will take to address the next challenge. But we can tag along by partnering with them - their stock will perform according to the business operating performance. The market will inevitably crash and drag down these quality business. As an investor, that's a dream coming true, being able to buy more of a good quality business cheaper than before.

Therefore, I welcome difficult times. Recessions and crashes should be welcomed, not feared. My investments will continue to produce cash (dividends) that can be used to buy stocks cheaper. What's not to like when things go on sale?

There's nothing wrong with locking profits and switching to cash, provided that it was always your plan - not because we are heading into difficult times. Then, you have cash, which is not growing your wealth. It's ok if you have a plan on how you will deploy it next. This is only a good move if your next investment outpaces the opportunity cost of holding cash now.

As a trader, heading into difficult times would never be a reason for me to sell either. I would rely on rules defined ahead of time and follow them strictly regardless how the market performs. Market gyrations / cyclicality are the cost of business to have the superior returns that equities provide.

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch


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Nov 4, 2016
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If your stocks are all high P/E ratio high beta, high risk high reward, yes you might want to sell them. Now is not the time for that. But if your companys are solid with low P/E, why not keep them for a bit?
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Sep 6, 2018
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Im planning on doing the opposite.. Going to buy more stocks this week.. expecting to sell for higher prices in the coming months.
Deal Fanatic
Oct 1, 2004
5329 posts
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Toronto
thread like this pop up every couple of weeks for the past year lol, maybe you should sell it all and buy GICs, let's all wait and time the market!
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Aug 4, 2014
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greg123 wrote:
Oct 1st, 2018 10:00 am
thread like this pop up every couple of weeks for the past year lol
4+ for me (basically, since I joined - might have opened some myself lol) Waiting for US Nov'16 presidential elections with some cash to purchase index ETFs with YUUUUGE discount if Trump wins had finally healed me from having "feelings" about the stock market and betting on red.. :)
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Mar 16, 2010
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Just be happy threads like this are still popping up. It's when no-one is thinking about selling that you start to see problems.
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Apr 21, 2004
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Which would be a better pick , EAFE (Europe, Australasia and Far East), US, or Canadian equities? Or if I better to split, what would be the best proportion? I know many people will suggest investing based on total market value so Canadian equities may have to take the back seat.
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alanbrenton wrote:
Oct 1st, 2018 11:41 am
Which would be a better pick , EAFE (Europe, Australasia and Far East), US, or Canadian equities? Or if I better to split, what would be the best proportion? I know many people will suggest investing based on total market value so Canadian equities may have to take the back seat.
I see a crystal ball sarcastic remark in your near future.. :)

Image
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freilona wrote:
Oct 1st, 2018 11:49 am
I see a crystal ball sarcastic remark in your near future.. :)

Image
I think with the trade war talks abating, I can move back to equities as I already missed 5-6% from being in SLF money market funds.
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alanbrenton wrote:
Oct 1st, 2018 11:52 am
I think with the trade war talks abating, I can move back to equities as I already missed 5-6% from being in SLF money market funds.
Well looks like at least one guy suggested the stock that actually went up (until now) in your old thread:
brunes wrote:
Feb 24th, 2018 12:44 pm
For what it was worth, I thought I "missed out" on AMZN when it was $300. Then I thought I "missed out" on it when it was $700.

It is very hard to tell how high AMZN is going to go. The company seems unstoppable. The only thing that I think is going to stop this stock is an anti-trust action.
So maybe it's not to late to follow @CollegeGraduate "All in on Amazon": amazon-amzn-1398999 ? :)
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freilona wrote:
Oct 1st, 2018 1:41 pm
Well looks like at least one guy suggested the stock that actually went up (until now) in your old thread:



So maybe it's not to late to follow @CollegeGraduate "All in on Amazon": amazon-amzn-1398999 ? :)
The only categories of funds I'm able to move into I've already listed.

It's part of our group RRSP.

I cannot buy AMZN even if I know it will be $5k in a few years' time. :)

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