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Selling, then buying back in?

Discussion in 'Exchange Traded Funds (ETF)' started by FrugalPoodle, 17th Sep, 2010.

  1. FrugalPoodle

    FrugalPoodle Member

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    Although I've bought at different prices -some at the bottom, I have a few of my STW ETF that I've bought at around $43, with the market up again for the moment, is there any wisdom in me selling some and buying back in when/if there is a drop?
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Hi,

    I have just been doing some accounting. I was down 16.6% on 30 June/09. I was down 7.15% on 30 June/10. I am down 2.77% today. The way I see it, now might be the time to hold on.




    Johny.
     
  3. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Anyway, trying to time the market is a mugs game. :(





    Johny.
     
  4. Chris C

    Chris C Well-Known Member

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    Are you a professional trader that really understands the reasons why asset prices go and up and down and is armed with up to date information to take advantage of your understanding?

    If not, then I'd stick to making your money through your day job and look at index fund investments as a place to park your money to yield a small return until you find something better to do with it.

    :cool:

    I'm sorry if you think I'm being too blunt.
     
  5. Billv

    Billv Getting there

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    Why?
    Isn't it better to sell and lock in the losses
    and in future use these losses to offset future capital gains?
    If you want to be in the market, you can always get back in.
    Or am I going crazy on a Friday afternoon?:confused:
     
  6. Johny_come_lately

    Johny_come_lately Well-Known Member

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    Sorry Bill,

    Perhaps I didn't make myself as clear as I could. What I was referring to was; My financial situation over time has been improving. The market over the last year has been incredibly volatile with ups and downs of near 2% common. But I am better off than I was on June 09. If I had sold then I would have locked in a 16.6% loss. As I have a 10+ year outlook I am bullish for the long term future.

    I make no bones that I cannot time the market. I do not know where the market will be in a years time, let alone what the All Ords will be at 4pm tommorow. If you know, I'm sure you have lots of friends. The reason why I invest, is my belief that there is a future worth living for.




    Johny.
     
  7. Billv

    Billv Getting there

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    We're all investing for the same reasons.
    Yes long term things should get better.

    Sometimes I wish we took a huge hit in one go to clean up the system. It would allow us to start fresh with no sovereign debt problems and other worries but it isn't going to happen so I'm afraid this fear and uncertainty which results in the current rollercoaster movement will stay with us for a long while.

    Some people say that since we're in for the long term it doesn't really matter how the market moves, but it does matter because if our portfolio today is worth the same as when we started 12 months ago and taking into consideration inflation we've gone backwards and we would have been better off leaving our money in a high interest savings account.

    I've gone back to cash and looking at the dark clouds still clearly visible on the horizon I'm not moving.
    The only investments I'm thinking off these days are term deposits and high yielding city property.
    Short term I'm keeping my cash but I'll get some equity out and will buy 1 more property.
     
  8. Tropo

    Tropo Well-Known Member

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    "...but it does matter because if our portfolio today is worth the same as when we started 12 months ago and taking into consideration inflation we've gone backwards and we would have been better off leaving our money in a high interest savings account..."

    but....there are still a lot of people who still believe in Santa Clause...:confused:
    As one wise man said...."In the long run we are all dead". ;)
     
  9. Chris C

    Chris C Well-Known Member

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    It it looking more and more like this will be the outcome.

    That is of course, until the RBA begins it's own competitive devaluation of the currency like most other western central banks seem to be employing (Japan being the latest) at which point being in a diversified portfolio of international equities will probably protect your wealth best.

    I'm mostly in cash too, but I'm close to making a move on getting some exposure in an international emerging markets fund while the AUD is still strong.
     
  10. FrugalPoodle

    FrugalPoodle Member

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    It was just one of those what if questions really... I'm ok with leaving things for the long term.

    My main concern really is how much of the market is overvalued, and what kind damage a correction would do to the etf. In the long term it would work itself out, but quality value stocks could fare better.
     
  11. Chris C

    Chris C Well-Known Member

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    Just like there is no guarantee the market will go up over the next 5 - 10 years, there is no guarantee that it will go down either.

    I'd suggest, like with buying any asset, just make sure that you only buy when you feel it's reasonably good value. And only sell when you are confident you can earn more elsewhere.