Retail investor: I sold everything. I'll buy back in when it drops


Me: & if it doesn't drop?
Retail investor: It has to eventually. It always dips at some point
Me: Sure... but from WHERE? It could run 40% first & "dip" back to a price above where you sold
Retail investor: I hadn't thought about the dip being higher than my exit
Me: Yep... you sold, triggered a tax bill, & now you need the market to crash below your exit MINUS the taxes you paid just to break even...
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