Hang in, or Bail?

by JDH on May 8, 2021

A lot of green on the stock screens this week.  That’s good.  Everything is up.  Gold.  Stocks.  Crypto.

But we all know “sell in May and go away”, so is it time to take profits, move to cash, and wait for a correction?

Probably, but the correction could happen tomorrow or six months from now.  Do you want to be on the sidelines for six months while the markets are humming higher?  No, you want to generate as much profit as possible.  So what’s the play?

I don’t know, but I did do some selling this past week.  I was close to 100% invested, and that’s dangerous, for two reasons.  First, in a crash, you lose money, and second, even without a crash, you have no cash to take advantage of potential deals.  So, I took some profits and moved a small portion of my investments to cash.

My biggest winner so far this year is QETH – The Ether Fund, which, as the name implies, invests in the crypto asset Ethereum.  Ether is up around 400% year to date, and I’m guessing it won’t keep going up 100% each month, so some profit-taking was in order.  Ether briefly touched $3,600 USD this week, and it is quite likely it will hit $10,000 before the end of the year, but it is also quite likely that it will have a 30% correction at some point in the next month or two, so taking profits is never a bad idea.

I guess if the crash happens tomorrow I will wish I cashed in everything, but for now, some cash is the safe play.

We shall see.  More next week.