Okay - I’ll jump in for some advice. I’m thinking of of cashing in most of a mutual fund that is now at about the same price I put into it years ago. (Down almost 40% since last year though). I need some cash to pay my end-of-the year taxes so they can be used to bail out the fat-cat fund managers and illegals with their bad mortgages.
Do I take the “loss” on the fund (from its highs - but break even from when I bought it) - or do I tap into my home equity loan that is on standby at the bank (5% rate as I recall - I haven’t had to ever use it). It would only be for a month or two once some of my clients pay?
I’m not a finance wizard, but here’s a point I heard from a smart guy on CNBC today that might be worth thinking about.
This guy said, and several of the traders on the show agreed, that the market could “pop” up 1,000 points at any time in the next days or weeks.
They based this on the fact that the “little guy” (not their term, but you know what I mean) down the investment food chain was panicked and moving out money. OTOH, they said that the Fed rate cut was going to reduce the interest on cash (as apparently it is) until it got too painful for the “big guys” to stay out of the market.
Then as those larger value investors start putting a toe in the market, more investors will follow.
The bottom line is: that since the bear is not based on value, but on market distortions of liquidity, it would be very easy to miss a rally.
P.S. Do whatever it takes to make sure your clients pay. I have friends with a small business who are starting to see “good” customers unilaterally deferring payment or “forgetting” to pay, “the check is in the mail” for the last two months, etc.