Are there any downsides to reallocating my portfolio to index funds?


I have been investing for a little over a year. I am in it for the long term, this will be our retirement fund. When I initially invested I was not very knowledgable.. and chose stocks (a lot of tech), not index funds. I want to reallocate my portfolio. All of my current stocks I was to reallocate I have held for longer than one year so I believe I should get a tax break.

As I began investing when covid started I was WAY up until the beginning of the month. Now my stocks are up.. but not by much. Does this mean it's a bad time to sell to reallocate? The index funds I want to invest in are also down, but not as much as my stocks.

Current stocks I want to reallocate are:

Apple
Disney
IIPR
Johnson and Johnson
MSFT
TSLA

And want to put them in:
IWM
VOO
QQQ

I want to keep:

Facebook, as I got in sub 200 and it's a short position atm.
NIO, I am in at $23 and short position atm
Mitesco, penny stock I enjoy gambling on

Is this a good time to reallocate my investments?


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