Boring Market

You only have three options in the stock market; buy, hold or sell. What will you do in this current market?

Nancy Trejos, a writer from The Washington Post, explores what you should do When You’re Tied Up in a Down Market. After reading this article a few times I have concluded that neither she nor anyone else really knows what to do.

With only three different choices to make with my stock positions and even with Trejo’s persuasive words I still stand firm in my investment strategy of holding. Its tempting to becoming a ‘bargain hunter’, however it’s hard to bottom feed when you’re not sure where the bottom is.

Selling could be the most dangerous option by far. If you sell at a loss, you’re only gain will be in taxes (with capital losses) and even if you do reinvest that money it will be increasingly harder to gain a profit. Understandably when a company is going downhill, jumping ship is advised. However, in most circumstances riding out a rough patch could be better for your portfolio.

Tags: Bargain·Bottom·Hold·Hunter·Market·Stock