Credit crunch topic
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It goes against good portfolio management to sell your winners and hold your losers.
Now i have got too seriously doubt that you have ever had anything to do with this profession at all.
Once again your post flies inthe face of all rational investment theory. You do sell you winners. How do you suppose to lock in gains? And with the new cash you usually like to average down on your losers, if you still believe in them. I think this is the crux of rebalancing a portfolio.
Maybe the question should be poised to you. What qualifications do you have to make such judgements? As far as i we can tell your an old man who got moved to management b/c of inability to produce. And couldn't produce b/c, as you admited, and displayed with every post, aren't very smart.
And finally. I wanted to be and planned to be in this carrer since i was 19.
[quote=the word]
It goes against good portfolio management to sell your winners and hold your losers.
Now i have got too seriously doubt that you have ever had anything to do with this profession at all.
Once again your post flies inthe face of all rational investment theory. You do sell you winners. How do you suppose to lock in gains? And with the new cash you usually like to average down on your losers, if you still believe in them. I think this is the crux of rebalancing a portfolio.
Maybe the question should be poised to you. What qualifications do you have to make such judgements? As far as i we can tell your an old man who got moved to management b/c of inability to produce. And couldn't produce b/c, as you admited, and displayed with every post, aren't very smart.
And finally. I wanted to be and planned to be in this carrer since i was 19.
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Nope, what you do is "Let your winners run and cut your losses short."
You do not sell your winners and use the money to attempt to catch a falling knife.
When a fund is under pressure to redeem they liquidate their cash and near cash positions first. If the pressure continues they begin to liquidate their weak positions, holding their stronger positions, hopefully to extend their gains.
As for wanting to be in the job since you were 19. I don't believe you. I've known a lot of 19 year olds and not one of them hoped to be a commission salesman.
[quote=blarmston]
After that its home for a nap then off to the W downtown where my friends and I are getting a table to enjoy the night...
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Oh boy getting a table at a hotel bar. Little boys pretending to be grownups, hoping that the W whore will sit down and negotiate a chance to get laid.
My goal was to be a CFP. Should be done in about a year.
Whose attepmting to catch a falling knife. If it was in your port. then you have some belief in its future prospects. And if dips a bit then you buy more. Certainly you don't buy more if some fundamentals or news changes. And yes you do sell your winners. How else do you produce gains? i guesss you could be stupid and think that since it went up it could never go down.
HAVE YOU EVER REBALANCED A PORTFOLIO?
[quote=the word]
My goal was to be a CFP. Should be done in about a year.
Whose attepmting to catch a falling knife. If it was in your port. then you have some belief in its future prospects. And if dips a bit then you buy more. Certainly you don't buy more if some fundamentals or news changes. And yes you do sell your winners. How else do you produce gains? i guesss you could be stupid and think that since it went up it could never go down.
HAVE YOU EVER REBALANCED A PORTFOLIO?
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There is no need to lock in taxable gains if I have unrealized, but still very real, gains and the NAV growth is reflecting it.
I'll repeat--"Let your winners run and cut your losses short." So if pressed for cash I'll sell my losers and hold my winners.
I am not rebalancing my position, I am liquidating to meet redemptions.
But even if I were rebalancing I won't be selling my winners to buy more shares of my losers just to avoid taking losses. In fact I will be agressively selling my losers so I can reduce my gains.
My shareholders won't care if I don't distribute capital gains at the end of the year as long as my NAV is up.
[quote=the word]
My goal was to be a CFP. Should be done in about a year.
[/quote]
If you're not yet a CFP your goal IS to be a CFP not your goal WAS to be a CFP.
You wanted to be a CFP or an RIA?
There is no need to lock in taxable gains if I have unrealized, but still very real, gains and the NAV growth is reflecting it.
...and your unrealized gains get wiped out when the market goes south, much like recently, and your NAV reflects it.
But even if I were rebalancing I won't be selling my winners to buy more shares of my losers just to avoid taking losses. In fact I will be agressively selling my losers so I can reduce my gains.
I must of selpt through the whole buy high sell low lecture.
My shareholders won't care if I don't distribute capital gains at the end of the year as long as my NAV is up.
What shareholders....
[quote=anabuhabkuss]
so i still dont understand whats going on in the market. I hate sounding like a twit but I'd rather look like one and ask then learn than not learn at all about what's going on with this credit scare.
i'd appreciate some 101 on this to whomever is willing to help someone who cares about this business. in the interim i'm going back to basic economics :(
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"As with any form of debt financing, until the spigot is turned off, you cannot understand the enormous impact readily available leverage has on prices and psychology. Increase the leverage available to asset classes and prices will rise." -- Seth Klarman.
And when you decrease the leverage available ---> See my sig.
Oh boy getting a table at a hotel bar. Little boys pretending to be grownups, hoping that the W whore will sit down and negotiate a chance to get laid.
Just got into the office- that's a good one... I did have an eventful night... Although she wasnt a hooker- just another 22 year old from Orange County down for the weekend to have a good time...