Stocks? Sitting tight? Selling? Buying?

[David Bassett]

Stick with your plan would seem to be the best advice. Markets go up & markets go down and any long term plan should include both. But with the market down there are a couple of options to tweak your portfolio while sticking with your larger plan.

Two options were mentioned by our advisor to consider are *IIF* you have "cash" on hand that you don't need in the foreseeable future, (i.e. not your emergency funds, or balloon payment funds, etc.) First, go a little heavy in stocks because they will come back. (She is thinking next fall, but admits it could be five plus years.) Second, roll regular IRAs or 401K funds into Roth accounts. The value is depressed right now and (US!) tax rates are at recent lows, so you minimize the tax due and convert all future growth to tax free. Of course, YMMV and consult your own financial and tax advisers.

[Jim Tobias]

Sit it out.....as always. It always comes back.....just a matter of how quickly that happens.

Jim

[Stephen Tashiro]

I am planning on leaving it in my estate, so my heirs will get a new basis.

Since few people actually own stock directly, it's an interesting question how taxes are done when a person owns stock through a brokerage account. One may declare beneficiaries to a brokerage account. It no beneficiaries are declared, I suppose the account becomes property of the estate and is settled by the executor.

In the case of beneficiaries, is the brokerage required to sell all the stocks in the account and distribute cash ?

The heirs of the account will not owe taxes on the inheritance, but must the brokerage or the estate pay some taxes before distributing cash?

[Doug Dawson]

What's happening now is what is sometimes called a "black swan" event in economic circles.
If you encounter anyone who talks with a "been there, done that, not my first rodeo" attitude, step away and practice social distancing.

You mean, like 2001 and 2008+? That was an important thing to have learned from, and gives me great calm.

Don't come home a drinkin', with sellin' on your mind, la la la.

OTOH, the other day the handyman at one of my buildings told me that 3 shots of whiskey per day are an effective preventative for viruses. I forgot to ask him whether that was all at once, or just at breakfast lunch and dinner. In either case stay away from the tools (and the keyboard) until it wears off.

[Doug Dawson]

Sitting.

I do enjoy trying to beat the market with a small account.

Over the past 3 or 4 quarters I have been rebalancing a little and will rebalance the other direction when market or economy starts to change. I live easier this way. What is going on now is no different than has happened in the past. It is normal to me. I expect it will take 2 to 5 years for recovery but I really don't know and won't worry about it. At least not now.

For me it is time in the market, not timing the market. The compound growth thing is amazing.

Indeed.

These event-driven (as opposed to fundamentals-driven) market downturns tend to be V-shaped.

[Thomas Crawford]

bought last week (obviously early). Buying more soon. Nothing speculative, only money and companies I'm comfortable owning for several years if necessary.

Once the market stabilizes I'll look at options.

[Doug Dawson]

Since few people actually own stock directly, it's an interesting question how taxes are done when a person owns stock through a brokerage account. One may declare beneficiaries to a brokerage account. It no beneficiaries are declared, I suppose the account becomes property of the estate and is settled by the executor.

In the case of beneficiaries, is the brokerage required to sell all the stocks in the account and distribute cash ?

The heirs of the account will not owe taxes on the inheritance, but must the brokerage or the estate pay some taxes before distributing cash?

To the first question, not unless that was specified in the will, which is probably unusual (and would demand an attorney, wills are cesspools of confusion if not done properly.)

To the second question, the brokerage account should be a straight pass-through to the beneficiary. It may not even be part of probate. It would depend on the jurisdiction. You should consult an attorney (which I am not.) And taxes owed on an inheritance would (in the US) likely kick in only after a very high threshold (tens of meelions) if at all. Things keep changing.

[Tyler Bancroft]

Think of this as 2008, but with more uncertainty. I doubt the markets have hit bottom yet.

[Rod Sheridan]

Sitting it out and buying at the same time...........Not selling anything........Rod.

[Doug Dawson]

Think of this as 2008, but with more uncertainty. I doubt the markets have hit bottom yet.

Probably so. It's kind of like a movie, the ending of which hasn't been written yet. And as screenwriter Bill Goldman said, re the movies, Nobody knows anything. :^)

[Paul F Franklin]

My investments are all in cash and have been for few weeks. Since I am retired, I am more concerned with capital preservation and less concerned with growth. I doubt I'll get back into the market until there are clear signs the virus is under control and the extent of the impact on our economy can be assessed. Right now, everyone is guessing.

[andrew whicker]

bought some Delta... going to buy some SP500 index fund soon

[Doug Dawson]

bought some Delta... going to buy some SP500 index fund soon

There's been some serious talk of bankruptcies among the major airlines, so buying stock in them right now could be very risky (shareholders are among the last in line to be made whole.) Buying GM in 2008 when the share price hit fifty cents did not work out well for people.

OTOH, buying Apple at $13/share back in 1997 when Steve Jobs came back on board, and people were seriously suggesting that Apple would/should go bankrupt and liquidate, turned out to be a very good call. OTOH OTOH, there is no Steve Jobs of the airline industry.

Buying S&P 500 index fund shares would IMO be a good bet, in the long run at least.

[julian abram]

Sitting tight, AA is 60:40 but have some cash on the sidelines to start buying more Fidelity S&P 500 soon. Although gut wrenching now, in a couple years we won't be thinking much about it. Investing is a long term game, stop checking you balance everyday.

[Scott Donley]

I have to admit, seeing the Dow at 20,000 I am having my doubts about hanging in there. I know the markets always come back over the long term but at 69 and poor health I am not sure any more.