Money Forum World

Hiram-Anthony · Joined: 08 Nov 2007 Posts: 2013

Just inquisitive on what you think the stock market will do in the next couple months. I have some cash in stocks that Id like to use to fund a house buy in the fall, and its taken a beating these past couple weeks.

Should I take the loss and cash out or just wait it out?

Rob Nixon · Joined: 08 Nov 2007 Posts: 2145

it already rebounded . And it'll do so again and again.
If you may be able to sell at a profit, think about doing so. But if the price dropped to the point where you'll be taking a loss, you have to look at where your money is what company? If its a mortgage or financial company, I could most likely get out. But if its a good sound company then ride it out. As far as your house buy goes, if you may be able to wait you may want to most likely do so as house prices are dropping.

max78 · Joined: 08 Nov 2007 Posts: 2103

It will rebound once you take your money out.

Mcknight ltd · Joined: 08 Nov 2007 Posts: 2170

Your purchasing opportunity will be coming up soon.

Kim Masonf · Joined: 08 Nov 2007 Posts: 2128

Looks like you took on too much risk. Fall isnt a long enough time horizon for investing in stocks. Your bond money should soften the fall, although.

No one knows what the market is going to do.

You may have to put off that home buy.

Recheck your risk tolerance.

Issac Lindsay · Joined: 08 Nov 2007 Posts: 2082

No, I think its heading into a natural correction for a host of reasons too long to emunerate. I dont believe the growth seen in 2007 may be sustained. But that, of course, is pure educated speculation. but, that doesnt change my following advice.

If your time frame was lasting I could propose you hang on and weather the storm, particularly with the lasting proven winners with good fundamentals. Im a bottom up trader and use tech analysis not fundamentals and in general market conditions so dont matter much to me.

If youre time frame is this fall, I could take any profits off the table unless a specific stock is still in a confirmed uptrend. On all your positions you may want to set some stop limitations like 2% of the current price lest you go into a free fall and really take a beating. Anything where youve already lost 6% or more sell and move on.

Stocks aren't the best place, at least not for all of it, to have money earmarked for the buy of a home in the 1st place. But since youve already done that seemingly no time for a lecture now. Maybe you just happen to have a portfolio and afterward decided to purchase a house. None of my business. Not trying to make you feel bad, just giving you good advice. nevertheless sounds like the stocks are beating you up enough already.

I recommend people saving for a down payment for a house to park a sizeable part of that money into something safe but comparatively decent yielding like a direct online savings account I recommend ING Direct Orange for easy use, cust service paying 4.5% or HSBC or Emigrant ot WAMU paying~5% . Avoid CDs and MM accounts yield too low.

Remember CAPITAL PRESERVATION IS THE NAME OF THE GAME in all successful investing, particularly for important money like retirement savings, college money, and saving for a home buy. All investors can find stock picks that get and make money. But what separates successful investors from the average investor is that simply put, they lose less money in the procedure by leveraging risk, money management, and knowing when to get out of a trade. that's, when its time to cut bait, take your medicine and move on, and you know, selling at a loss and putting money someplace where its really earning something, not bleeding like a stuck pig in a stock that one started to feel an emotional attachment to and cant get ego and wishful thinking out of the way long enough to make a reasonable choice anymore.

Warren Buffet put it best about the rules of investing:

Rule #1 Dont lose money

Rule #2 See Rule #1

Hope that assists and good luck.

Ty Daniels · Joined: 08 Nov 2007 Posts: 2139

Yes.

Now isn't the right time to purchase a house.

You have to wait more months and you'll get a far lower price.

Wilfredo h. · Joined: 08 Nov 2007 Posts: 2149

Hi, I recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

investingtutorial.info/

wish it'll assist you.

Good Luck, Best Wishes.

DetroitBlazer · Joined: 08 Nov 2007 Posts: 2112

I notice you asked this question four days ago. If youd acted then, you could be ahead. The market continued to decline plummet? but, so now its late. Wait out this correction.the market needs to make corrections from time to time.this one is overdue.