SELL SELL SELL if you need your money soon, no matter how much you
are down in the past month. If you don’t
need your money that’s in the stock market for another 10 years then turn off
the TV and ignore the headlines. But if
the money you plan to use to buy a house in 3 months is sitting in a stock fund
then you’re taking a big risk with cash that should instead be invested in
something safe. In the short term, the
stock market can be quite volatile. If
your account falls by half does that kill your plan to buy a house and do you
really want to take that risk? Are you
hoping to make back a few percentage points by staying in the market with money
you can’t afford to lose? Consider the
upside and the downside and you might realize the stock market is no place to
invest the money you absolutely must have in the next months. And if it helps to put it in perspective, if
you sell today, you are locking in gains of around 10% per year over the last three
years.
Larry Pike, CFA
Client Priority Financial Advisors LLCwww.clientpriority.com
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