Personal Finance and Investing
In reply to the discussion: Need advice: should we ride out fluctuations in the market [View all]IphengeniaBlumgarten
(328 posts)I agree that Trump's unsteadiness will eventually do damage to the markets -- just look at his on-again-off-again antics with tariffs in the last few days. On the other hand, the markets are up substantially since he took office. (I admit I considered reducing my holdings when he was elected, but am now glad I did not, as everything has gone up enough that I feel I could weather a big drop with equanimity.)
Jumping in and out of investments can result in taxable events and commissions, which cut into your gains. But if you expect to need the money in the next year or two, you maybe should sell and put the money in something less volatile. Bonds are not particularly good at a time when interest rates are expected to go higher, like over the next few months.
Also consider that, when the market does correct, it is a very good time to buy. This might be another reason for moving some of your investments to cash.
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