The market doesn't care about when you want to exit.

This is a hard question.

But I have a subscriber who purchased S&P 500 at all time high.

As we are approaching a peak and near the top, we are 3-5% away from her entry price.

She doesn't want to sell at the top but based on my forecast, we only have 7-14 days before the market starts to go down again.

So the options are:

1) Hold till her entry price, even though she bought at the top (all time high). This means she will potentially hold for months till the end of the year

2) Exit now given we are a few weeks before the Fed decision and not risk it

If the market is going to turn, then setting a specific exit price is irrational in my opinion as the timing of the market doesn't care about whether or not your entry price is reached.

This is especially true for a recessionary year.

I think this comes down to the strategy you are using.

If you have a momentum-based strategy where you can reasonably forecast overbought or oversold levels, then I think timing the turning point can work.

If you don't have any strategy, then you can only focus on the entry price you made.

Cheers,

Eric

----

Eric Seto

Chartered Professional Accountant (CPA)

Chartered Investment Manager (CIM)

Founder of 5MinInvesting.com

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