We received this question from an ETF Trends reader this weekend:
What do you suggest for right now? Our portfolio is down to almost half its value and everything seems to be trading below the trend line (except for short ETFs). Do you recommend:
a) Liquidating the portfolio and waiting for things to start rising
b) Hanging in there and adjusting the portfolio when something starts to move upward?
c) Liquidating the portfolio and investing in short ETFs, gradually transferring to others as the market turns?
Would love your advice – my husband and I disagree and need someone to resolve the dispute.
You’re not alone in asking this question. Investors everywhere are in your shoes, stunned by a downturn that is longer and steeper than anyone had anticipated it would be.
If you followed our plan of exiting when a fund is 8% off the high or below its 200-day moving average, you’re doing okay. But if you’re a buy-and-hold investor, these are the kinds of things you might be asking.