(03-20-2020, 11:40 PM)dmonte Wrote: Thank you for the great responses. I totally understand the rationale behind the strategy.Are you willing to re-enter before the skies are actually blue? If not it will cost you. I did just as you did with half my port in 2007. I got lucky and it worked out. If you get it right this time it will empower you to believe you have the ability to time the market going forward. You'll miss much of the ride when the market shows you what 0% interest does for a recovery.
Crazy busy week, everything changes rapidly now, and finally have time to surf here.
I did sold almost everything and hold cash at this moment.
My move was based on a few things:
1. The DG+Growth portfolio (70% CA) was relatively new (2 years), which means its cost was pretty high compares to a decade old portfolio. Therefore the portfolio had very little buffer to deal with this level of market crash.
2. I don't foresee strong future personal cash flow increase. That means it will spend too many years for the portfolio to reach a meaningful cost-average (to me. means it becomes even to what I invested).
Therefore I took the path to turn everything to cash. And one thing i didn't foresee before sold my positions: there are too many dividend cut recently and many of them were in my portfolio. I think I was just lucky and did the right thing for my own assets.
I plan to take a pause, study the new landscape slowly, and will have to pick a timing to rebuild a portfolio.
How large of a loss did you just lock in with the market down 30%?