Why Smart Investors Sold Some U.S. Stocks This Year

We pulled our rental car into my mother-in-law’s driveway.

It was 11:30pm. I still remember the lights casting their beams across the neighbor’s grass.

The sign on the edge of the lawn read, “Trump, Pence: Make America Great Again!”

Two weeks later, Trump shocked the world when he won the presidential election. U.S. stocks soon began the “Trump market rally.”

From the date of the election (November 8, 2016) to June 6th, 2017, the S&P 500 gained 15.62 percent. 

Image by Pixabay

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worlds best value financial advisor

Andrew Hallam

I’m a financial columnist for Canada’s national paper, The Globe and Mail, as well as for AssetBuilder, a financial service firm based in Texas. I’m also the author of Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School (2nd Ed. Wiley 2017) and The Global Expatriate’s Guide To Investing: From Millionaire Teacher to Millionaire Expat (Wiley 2015). My mission is to educate, motivate and inspire people on basic retirement planning and best practices for investing, using evidence-based strategies. I'm happy to comment on your questions. However, please read the Terms of Use, Privacy Policy and the Comments Policy.

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3 Responses


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  2. Mario says:

    Hi Andrew,

    Thanks for this insightful post. But, how about “buy and hold”? I own VUN.TO. Bought it at CAD$ 37 and it recently reached CAD$ 46, although it has since dropped. I have not sold any of my units because I was able to add fresh money to balance my other holdings and keep my asset allocation as I planned it. Am I not smart by not selling any of my VUN.TO when it reached that high?

    Thanks in advance for your advice.

    Mario

    • Mario,

      What you did was fine. But if you had a portfolio in the hundreds of thousands of dollars, your new additions wouldn’t have provided enough money (unless your salary were massive) to bring that portfolio back to its goal allocation. In such a case, investors would have needed to sell some U.S. stocks.

      Cheers,
      Andrew

  3. Mario says:

    Clear. Thanks for the response.

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