I have a small stock portfolio and wonder if I should sell it all to invest in CDs or bonds in view of present

Answer 1

What you do with you stock portfolio depends on a few factors.
1. When will you need this money in the future?
2. How liquid do you need this money to be?
3. Can you leave this money to grow until the age of 59 1/2?
Also, consider this...if you put you money in a CD, you will have to pay taxes on the interest during the year of gain. I would consider a "tax-deferred" account for maximum growth. You will pay taxes on the money in the future when you access it.

Answer 2

An investment is where you worth, not money, grows. This magic number depends on inflation and taxes, but right now it's in a range between 6%-7%. Anything in that area is a wash, anything below that area is a loss and anything above that line is a gain. This now leaves stocks, the worst of the worst junk bonds and commodities as the only real investments.

As far as the bond market goes, it might actually look good. Corporations, even good ones, borrow money from time to time. For the last few years money was cheap. So cheap in fact, that if they borrowed money from Japan, they would pay zero percent interest. Now that credit is going away fast and so to borrow money now, they will need to issue bonds and they might have to raise their rates. In the 80s, bonds and stocks both had braggers. That's because some of those now wimpy EE bonds in the 80s were paying over 13% interest guarenteed for 30 years. Anything with a hint of risk was paying even more. Now who wouldn't want that?

Answer 3

Don't try to time the market. You'll incur extra costs buying and selling, and nobody knows what the markets will do in advance. You should only sell your stock portfolio if doing so meets your investment goals. For instance, if you will need the money within the next 2-3 years, you should probably have it in something safe like CDs or money market. Or if you just don't like the risk of stocks, and you're willing to accept a lower return in a safer investment, then sell away.

Answer 4

I wouldn't suggest it, stocks go up and down, with CDs and bonds you get like 5 to 10 % return, if you just invest in the dow, you'll have 16% yearly, but you could get caught in a bear market, however thats not the now.

Answer 5

Since your stocks are only one click / $10 a trade away, there is not reason to be a hero and watch your portfolio shrink. The market may recover and start another leg up - in which case you can always buy back; or it may continue to slide - in which case you will lose more.

There is time to capture gains and time to preserve capital.

Answer 6

buy low sell high

if you sell now it should be because of great returns over last year or so, not because there was a relatively small dip in the market that until last several years was fairly common

(if you sell short you are selling high first then buying low afterwards)