I’ve been seeing many posts here saying “DON’T PANIC SELL!” Of course, panic selling is bad and it could cost you missed returns, but since when did selling, as a general concept, become perpetually associated to panic selling?
There are many reasons to sell now, because odds of us approaching into a bear market is immensely high. People say, “buy more”. Yes, of course. But some people do not have cash on hand. Only when they sell, would they get the necessary liquidity buy at the market’s lows.
A simple strategy can be, liquidate most of your stocks, set a time horizon of when you think the bear market will end (6 months, 1 year, 2 years, etc.), then DCA back into the stock market based on this horizon.
Not all selling is “panic selling”. There are definitely very valid reasons to sell your positions right now.