Broker Check

Do I Buy? or Do I Sell?

April 25, 2022

Have you ever been shopping and seen prices drop.  We try to understand why but just cannot get a handle on it.

We know that the cost of the item we say go on sale will most likely go back up.  Lets use gold as an example. 

The price drops is you want to buy gold - but also if you want to sell the gold the offering price will also be down.

This makes one ask- Do I buy or do I sell?

All things that are for sale or what we want to sell create the same thought process- to buy or to sell.

Over the years, when the markets correct or go down as a result of political, or social or weather related event- people do not think: Do I buy? or Do I sell?

If you were buying a car and the price was down - you most likely will buy.

When you get a 30% off coupon for your favorite store you might run out and buy items you have put off because of high prices.

With the market lower over the last few months, some people are sellers!  Shouldn't we think more like this being a chance to use the discount coupon and buy?

We all feel better when the market goes up and it is natural to feel bad and worry when it goes down.  But should we not look to the past to see the future?

Markets can recover and the people who went shopping with their coupon tend to get the better deal in the long run.

The question is should you choose to sell on feeling bad or use the discount coupon to buy at a discount?

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.