Despite the market hitting all time highs again this week, I'm looking to exit the market. Well, not completely, but definitely with my peripheral holdings that are profitable, and a significant part of our core holdings.
I've already gone to 100% Cash/CDs in my daughter's 529 account. Since then I've been scaling out of our investments in smaller chunks. I sold parts of the peripheral holdings in my personal investment strategies. I've been taking profits in stocks that were purchased in November/December 2018. I've been selling part of some core holdings (specifically REITs) that are up significantly.
Yesterday, I gave instructions on selling a big piece, closing out one of the investment managers at a brokerage. The manager has done acceptably well, but again, I prefer to lock in the gains that have occurred to date. The close out will happen later next week, so I won't mind the market continuing to advance through next week.
Everything is on the table for selling, except my company stock, which I am holding to do an NUA. By the end of May, I plan to exit another investment manager account.
Why all the sudden selling?
- First, on yield curve inverted in late 2018, and another yield curve inverted in March 2019. Typically, a recession has occurred 7-24 months after a yield curve inversion.
- The rebound from the December 24, 2018 lowest has been parabolic. Our gains in the first four months of 2019 would be a good return for most entire years. It can't continue at this rate, and if it does, a market crash is very likely.
So I am selling early, know full well that I may miss out on some gains. But that's a risk I'm willing to take to sleep better at night.
For more on Reflections and Musings, check back every Saturday for a new segment.
This is not financial or investment advice. Please consult a professional advisor.
Copyright © 2019 Achievement Catalyst, LLC
No comments:
Post a Comment
Comment guidelines: My Wealth Builder will publish comments that are about the topic and do not contain inappropriate language. My Wealth Builder reserves the right to edit or delete comments for any reason which includes those that have advertising (either for a product, website, or blog), contain inappropriate language or are not about the topic.