The Triage strategy to raise funds in a bear market.
Now that we are getting a good relief bounce on this tragic biotech selloff, we can look at a strategy I like to use to raise some funds while not selling your best picks.
Now that we are getting a good relief bounce on this tragic biotech selloff, we can look at a strategy I like to use to raise some funds while not selling your best picks.
I call it "triage my portfolio". Some call it "circling the wagons". No one wants to sell stock while its down and getting crushed, but we all have at least 1 stinker in that portfolio that we just wish we could get rid of so we could put that cash into something we like.
These big bounces provide and opportunity to raise cash by dumping the bad companies at a better price so we have some cash incase the bear market resumes or goes lower. That can always happen. Never dump the good companies to fund the bad. That is always a bad idea.
Now is a good time to go over that portfolio and identify those companies that are causing you grief and which ones you would like to buy more. You don't even have to go all nuclear and sell a lot. You can just sell off a little something to get some cash just in case.
I typically don't give advice on what to buy or what to sell, but this is a viable option if you are looking for cash.
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