Should I Sell My Stocks?

Should I sell my stocks?

This is a question I get anytime there’s any disruption in the broader markets.

And my answer is always the same…

Only if you hate money.

The lesson has been learned time and time again.

How many times have you seen investors complain about “selling too soon?” 

Indeed, I’m never one to trivialize a gain — no matter how small.  But selling your stocks out of fear or panic will get you to the poor house faster than anything else.  And unfortunately, most investors don’t have the patience or discipline to really make investing worthwhile.

One of my favorite examples of not panic selling is United Healthcare (NYSE: UNH).

When the 2007/2008 market meltdown happened, the panic was palpable.  And while there were certainly some stocks that never recovered, most did.  At least those stocks that were in no danger of going gently into that good night to begin with.  UNH was one of those stocks.

During that meltdown, UNH lost half its value, falling from around $60 a share to $15 a share.

That’s a 75% haircut! 

But that wasn’t the result of anything more than what was happening in the broader market.  And at the time, UNH was a stock I told folks to hold onto.  Because once the smoke cleared, it was one of many healthcare stocks I knew would not only come back — but rally in a big way.

After UNH bottomed out, it slowly began its ascent again.  And those who held and did not give into the panic, made a fortune.  Check it out…

That was how the stock performed after hitting a low of less than $15 a share.  So since then, the stock has rallied nearly 4,000%.  Imagine losing out on a 4,000% gain because you sold out of fear.  That one would sting, for sure!

And this is just one of many stocks that rallied strong after the 2008 recession.

Should I Sell my Stocks?  Not without a good reason

This isn’t to say, of course, you shouldn’t sell specific stocks that you don’t believe are going to deliver for you.  Sometimes you do have to cut bait and move on.  But this should only be the result of proper due diligence.  Not panic selling.  And in fact, when the panic selling begins, that’s when you need to be a buyer.

We saw a bit of panic selling last week in the crypto space after Bitcoin tumbled from more than $102,000 to $96,000.  But there will be a rally in Bitcoin again, so if you own any, I hope you didn’t sell into the panic.  Especially with what’s coming down the pike.

Last week, the new White House Crypto Czar, David Sacks announced that the crypto working group established by President Trump’s executive order is evaluating the establishment of a Bitcoin reserve as an early priority for the administration.

As reported by Crypto analyst Gino Matos, Sacks outlined the working group’s mandate.  It includes collaboration with the SEC to propose a federal regulatory framework for digital assets and stablecoins. 

Make no mistake: in the presence of a strategic Bitcoin reserve, Bitcoin prices are going through the roof.  The best way to play this is not just by owning Bitcoin, but by also owning the companies that mine the stuff.  Like this one, for instance.  Which has already allowed us to score gains in excess of 6,700%.  

Few investors even know about it, though.  Some have even called it “Trump’s Secret Bitcoin Play.” 

But we sure as hell know about it.  And based on recent returns, this is the kind of thing that can turn $5,000 into more than $348,200.  And if you don’t believe it, just look at the evidence for yourself.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is an editor of Energy and Capital as well as a contributing analyst for New World Assets.

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