Logically, you know your asset blend should really only alter if your objectives alter. But in the facial area of serious market swings, you might have a difficult time convincing you of that—especially if you are retired or close to retirement. We’re in this article to aid.
If you are tempted to go your inventory or bond holdings to hard cash when the market drops, weigh your final decision versus these 3 factors ahead of taking any motion.
- You are going to “lock in” your losses if you go your portfolio to hard cash when the market is down.
At the time you’ve offered, your trade just can’t be modified or canceled even if situations boost right away. If you liquidate your portfolio currently and the market rebounds tomorrow, you just can’t “undo” your trade.
If you are retired and depend on your portfolio for profits, you might have to