What bonds? There is an almost zero chance that the expenses of the US government decrease while there is a good chance that their revenue takes a hit. At some point you can't pay your dues (and no, printing currency is not paying your dues, you are getting hit on your basis).
It's possible everything is just going to be bad.
I'm leaving my diversified retirement mutual funds as they are, because that's why they are diversified; but otherwise yeah, I sold all my other holdings during the rebound earlier this month. Not interested in participating in this wild ride.
I am not. This is almost entirely an emotional decision. The "smart" thing to do from a purely algorithmic statistical point of view would be hold and wait. But I'll happily take my 5% for now, rather than waking up to crippling anxiety every morning about what the orange man is going to do next.
Fair enough. I’m not a therapist but I have a multi decade investment horizon. And if my conservative portfolio tanks there will be much larger problems.
Also did you take a huge take hit to reallocate to bonds or was it all in tax advantage accounts? Seems more crazy to sell all equities when you have to pay tax on the gains.
What will happen in the market if Trump keeps blinking and folds further, congress takes back the tariff power, Trump loses big in the midterms, GOP loses big in 28, AI ends up being a big thing, etc?
You will eventually have to buy back in and you don't know where the bottom is.
Speaking entirely to retirement accounts. Taxables are pretty much screwed either way.
>"What will happen in the market if Trump keeps blinking and folds further, congress takes back the tariff power, Trump loses big in the midterms, GOP loses big in 28, AI ends up being a big thing, etc?"
Maybe I will miss some growth. But watching my life's work evaporate on this wild ride is too much to stomach.
>"You will eventually have to buy back in and you don't know where the bottom is."
Indeed, and I don't intend to time it. Not waiting for a rebound. Waiting for sanity.