What should I do with my stocks?

[honestlou]

You said this was not your retirement, but if it pre-tax dollars I think it has to be some type of retirement plan, which will be taxed and penalized if you withdraw funds early. Make sure you know what you have.

My advice is to match the investment to the goal or purpose. If it is retirement, you have a long time to go, and consistent investing in the market is the way to go; don't worry about short term (even several years) ups and downs. You have a 40 year horizon here.

If, on the other hand, you are saving this for a short term goal (3-7 years more or less), such as for a car, boat, guns, or down payment on a house, you should not be exposed to the market at all. Stay in cash.

If it is "play" or gambling money, it shouldn't be in a tax defferred account.

Lastly, picking a handfull of stocks and trying to correctly "time" the market is more gambling than investing; and that's okay as long as you know it. You can play smart, but you will still be lucky or not. Investing in the market requires a longer time commitment and a balanced portfolio of stocks. It is difficult, if not impossible, to be an index fund.

 

[honestlou]

To "beat" an index fund. My iPhone won't let me scroll that far down to edit.

 

[my-rifle]

In 2007 knowing what happens in the last year of a presidency, I had my wife transfer all our investments to low-risk stuff. Sure enough the market tanked, but we did fine. We made money during the depression. When the new president came in I had her switch it all back into riskier investments, and sure enough the economy has rebounded, and we made money again. The economy is improving. The austerity measures of the past year have begun to be reflected in the stock market, and as long as we keep the steady hand on the tiller the economy will continue its upward trend.

Now is the time to be investing in (relatively) risky rewarding investments. As was wisely said earlier, buy low and sell high. The market is still fairly low now, and there are profits to be made for the individual who stays alert.

Unfortunately for you you haven't seen as many market trends as some of us older folks, but you can be assured that buying now and selling when the market rebounds is a good investment strategy. Investing in low-gain stocks will protect your money - but you won't make much while the market is rising.

 

[kcinnick]

To "beat" an index fund. My iPhone won't let me scroll that far down to edit.

You can scroll a text box on an iPhone, touch the box and hold with one finger then use you other finger to scroll like normal.

 

[Nomad.2nd]

Right now I've have some stock in a small biotech co, a small coal co, and 2 ETFs that short financials and real estate. The 2 companies are a high risk/reward type thing, and I have the shorts because I think things are going to get worse. What I'm concerned with is the deferred compensation program I have at work. Every paycheck a little is automatically taken out direction and invested in funds of my choosing. This isn't my retirement. It just allows me to invest in stocks pre-taxes. So far, since I've begun working where I am, I'm up 27%. Should I just pull out the funds I do have now and stop putting into the program? The future is uncertain, and I'd rather not go back into the red.

^ You answer your own question.

You must be comfortable with your decision.

It's not worth loosing sleep at night.

 

[my-rifle]

He's too young to be worried about stuff like that. At his age he should be taking chances, not being conservative.

 

[Nomad.2nd]

He's too young to be worried about stuff like that. At his age he should be taking chances, not being conservative.

No one can Make someone elses decision about what they are comfortable with for them.

 

[Born4spd]

Well im down 46%.

So my advice isnt worth **** haha

 

[CloudStrife]

I do have an account online that I tinker with sometimes. The deferred comp through my job (state) is in addition to the standard retirement fund. It's just a way to invest before taxes, but you don't have much control over it, and there are penalties for early withdrawal.

 

[Vigilante Sniper]

Sell them to me for $1 and claim a loss on your taxes. Obama will take care of you.