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Originally Posted by So Cal Camaro
Interesting, when you take profits its noble, to step aside and wait to see what happens, but when I propose essentially the same thing you are stating here, I'm trying to time the market...please explain?
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Huge difference between Timing the market and FUNDAMENTAL or MATERIAL CHANGE.
Change being the difference.
Trying to TIME the market is sitting on the sidelines - or being invested - and then just trying to wait for the price to dip a buck -- or for it to go up and buck etc....
What happens when you're trying to time the market is you'll miss a move or moves trying to be "cute" with what will amount to very small potatoes. Bending over to pick up a dime.
Now -- Let's take MCD --- back before they made a HUGE FUNDAMENTAL CHANGE with the CEO (corporate) the stock was under $100 and maybe even was flirting with low $90's.... now -- it's had a sweet run UP to $131 and now it's pulling back to the low $115's. So if you've held over a year and one day - there's a 20% long term capital gains tax to be paid... but a very nice gain too!
Now -- My writings here have always been about WHAT TO THINK ABOUT --- not what to do. That's up to people to decide on their own.
Remember what I was really talking about was to beware and aware of FUNDAMENTAL CHANGES in your holdings -- sometimes that is a good thing and sometimes you get eaten alive.
This is more about HEADS UP!! THINK ABOUT IT! BE AWARE!
If you have 5 or 10 shares in your IRA/401K -- then you don't do anything because this is a good long term name you shouldn't worry about TOO MUCH.... but the fast food game has been in some disarray in the last few years so it's not the buy and hold forever game it used to be. Coke has some serious competition with new style drinks - Fast food has it's challenges...