from Hacker News

I Sold My Entire Investment Portfolio One Hour Ago

by karanke on 8/3/20, 5:53 AM with 16 comments

  • by PacketPaul on 8/3/20, 2:26 PM

    The problem I have is pulling my money out immediately reduces it by 15-30% because of taxes. So for every $1000 in stocks gains, I will only have $850 to invest in the future. So taking money out is a guaranteed reduction of your investment portfolio.

  • by esotericimpl on 8/3/20, 9:28 AM

    But did he consider that Jerome Powell has a money printer that goes brrrrr?

  • by zenincognito on 8/3/20, 9:02 AM

    Note that while interest rates remain low almost every asset manager is going to remain invested. So are people like Buffet. Invest in Index. Don't pick stocks.

  • by kory on 8/3/20, 1:19 PM

    Sitting in USD is more risky than tech.

    Tech is still the future. Recession isn’t hitting tech as hard as others, recent financial results prove that.

    The dollar is being printed on a massive scale. That’s what’s pushing up stocks. It’s not a bubble as much as it is moving the baseline value of stocks relative to USD.

    Property will also be going up in the near future (this has already happened in today’s super low interest rate environment). Property historically holds its value; this article reeks of recency bias. Because most investments aren’t doing well now, real estate is an attractive place to park all of those “on paper” printed gains (which are not real gains, of course).

  • by zatertip on 8/3/20, 8:10 AM

    Nitpicking, the pandemic was hardly a black swan. People around the world have predicted it since forever, it was only semi-black swan in the amount of preparation for and willingness to deal with it that the US mustered.

  • by ericmay on 8/3/20, 2:00 PM

    Largest analysis mistake here is looking at past events CDOs as mentioned and believing the exact same thing will happen again. The outcome won’t be the same, because if it were to be then the fact that we know the outcome would be the same changes everyone’s investment decisions.

    Sitting on cash is almost universally a bad idea in my opinion (more than a few months of emergency or if you are saving for something). It means you think you can predict the market. You can’t.

  • by aww_dang on 8/3/20, 7:49 AM

    The author makes some good points, but glosses over USD valuations as a risk factor.

  • by thoughtstheseus on 8/3/20, 3:57 PM

    A 100% cash portfolio is highly exposed to inflation.