Buy, Sell or Hold?

Some are fearing a Bear Market again with the Dow and S&P 500 taking a beating the past three days.  But overall the market is still up for the year.  I have been telling you since last fall that 2014 was not going to be another 2013.  There have been some real bulldogs in the market that have stood tough and are making some good profits.  But for most investors with a well diversified portfolio they have not seen close to the gains they saw in 2013.


Historically the months of September and October are the times to buy stock.  But as you also know there are always exceptions to the rule.  And we have seen more of these exception in recent years.  Right now the market is down and correcting.  Companies pushed prices too high and now things are getting back down to where they should be and you will most likely see the S&P 500 fall to the 1,700 mark give or take before the correction is over.  It is certainly not going to surprise me any if that is the case.


So the question is, do you Buy, Sell, or Hold?  I think right now is a HOLD period for most investors.  Things are going to get worse before they get better and every expert is saying this and I have said it since 2013 and that 2014 was going to be the year of the Mutual Fund.  Now does that mean sell all your individual stock holdings and throw it into Mutual Funds?  Absolutely not.  But this is why you should have good solid Mutual Funds that help balance out your portfolio.  Not only should you have a balanced set of Mutual Funds, but if you have individual stock holdings, those holdings should also be balanced across the various sectors of the market and properly weighted.  I say that now is definitely a time to HOLD before making any drastic decisions. 


But then you say to me..."But the experts say to buy low and sell high".  Well that is true.  So when should you buy with the current situation in the market?  Well, that is yet to be seen.  But I am going to be looking at another 8 to 10 percent drop in the S&P 500 before I consider buying anymore individual stocks.  As for Mutual Funds, you should continue to put in your regularly scheduled contributions to your funds.


When to Sell?  If you have good quality stocks paying good dividends and your individual stock holdings are well weighted then I am saying to HOLD.  If you feel you need to sell any of your individual stock holding then then I strongly advise seeking the advise of your financial advisor.  Mutual Funds, don't sell.  That is why they have mutual fund managers.  They make those decisions for you.


Gus S.






Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.