I've seen too many posts and comments on this subreddit of people claiming they're selling 100% of their portfolio when they're -30% to -50% down. I don't see ANY scenario where anyone should be doing this unless they put money in that they were going to need in less than 18 months or are thinking too short term. Clearly yeeted all their money on an overvalued market and kept nothing as an emergency fund if they can't last more than 4 months in a dropping market.
I get that some people will fall on hard times and will need to liquidize as they need cash in order to survive, there are always going to be those cases whether it's a bear market or not. But we're only 4 months in and people on here are first-hand admitting they're doing it because they are fed up of looking at red.
I would try to get more cash in any other possible way before I sell something in the red, even when it looks likely we're going down further from here. Because in 5-10 years, this fall will be a distant memory. I would get a second job, sell my things, reduce all luxury spending to zero…all before selling positions that are 30%+ down.
Is anyone else finding the “I'm selling everything” attitude to be beyond unbearable? Alpha Chad's trying to pretend like it's an alpha play when the truth is…it's not a loss until you sell.
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