Re: Sell cost of an investment trust
Posted: Tue Jul 13, 2021 5:20 am
Although my previous reply was in jest, let me seriously advice you that a "rotation" strategy has serious inefficiencies baked in which you should not ignore. Aside from the fact that you can't predict the markets, if and when you sell something that is in the money, you incur serious costs on your gains, and nip in the bud any further gains. Conversely, if you sell something that is down, you lock in the losses.
Assuming your investment time horizon is long, a better strategy portfolio strategy would be to actively rebalance by, for example, putting any new money into your uderperforming asset classes. Specifically how you rebalance is up to you, but this strategy would ensure you stay invested for long term growth instead of selling, lets you avoid taxes as long as possible, and could potentially set you up to buy things at low valuations.
Assuming your investment time horizon is long, a better strategy portfolio strategy would be to actively rebalance by, for example, putting any new money into your uderperforming asset classes. Specifically how you rebalance is up to you, but this strategy would ensure you stay invested for long term growth instead of selling, lets you avoid taxes as long as possible, and could potentially set you up to buy things at low valuations.
