Temporary market protection?
Terry, since no one really knows what will happen with the market after this election, is there a way to temporarily shield a majority of your Investments? Bonds? CD’s? In other word s, is there some way to temporarily get out of the market until things settle down and then to jump back in? And would my Edward Jones guy go for that ? Thank you!
Terry Says
So if you sell now there are two problems, maybe three. First, you could be wrong. then you’d be sorry! If you’re right, and the market goes down, the second issue is “when do you get back in”? You’d have to be right a second time to make this work.
And finally, if your account is not inside a retirement account, there would be taxes to consider.
I’m sure most brokers would be thrilled with all this activity, since they get a commission each time. So I wouldn’t ask that person for advice!
The stock market is at all-time highs. So whether you have the money inside an IRA or just in after-tax investments, this might be a good time to take “some” profits, and put the money away in “chicken money” investments like T-bills. The proportion is up to you — but enough to let you sleep through the next bear market, whenever it arrives.
