Do you want to sell the fund when it goes up? How to deal with the downside risks in the market outlook
Many small partners are eager to sell and take profits. Everyone can understand this feeling, because according to historical experience, the stock market will rise too fast in the short term, and it will always pull back, and the cooked duck may fly away. But what we want to say is that retail investors must learn to restrain this idea if they want to make money from the cruel stock market.
Whether to sell funds or stocks should have nothing to do with whether you lose money or make money in the short term. If you need money urgently, you can consider selling index funds with normal or overvalued valuations. However, if you don't need money for a long time, and there is no other destination with higher expected income, then this fund may wish to wait patiently.
The fixed investment of the fund pays attention to adding positions when the valuation is low, holding (or continuing to invest) when the valuation is normal, and selling when the valuation is too high. Therefore, if you want to sell the index fund in your hand, you can look at whether the valuation of the corresponding index is high or not, and it has not yet reached the overvalued area. We don't recommend throwing it away like this. I have picked up cheap chips in the bottom area for a long time and haven't earned them yet. It's not in vain.
As for the downside risk of the market outlook, as long as the quality of the target you buy is good and the purchase price is cheap, then in the process of holding stocks or funds, you can only keep up with the market if you dare to bear the risk of market fluctuations. If we make meaningless operation prediction on the market outlook trend, we will eventually fall into a dead end.
Well, the analysis of whether the fund has gone up is here, and I hope it will help everyone. Warm reminder, the fund is risky and needs to be cautious in investment.
Introduction reading:
What do you think of the fund you bought? Analyze from many aspects