Sold 50% of portfolio at the bottom, want to reinvest but how?

OpalMiner11

Hi all,
I made the stupid mistake of selling half of my portfolio in the middle of March (stupid mistake and I hope to not repeat it again!).
The market has since risen 15% and I don't need the money since it was for FIRE. What is the general consensus regarding putting it back?
Should I just lump it back in and wear the 15% hit, DCA slowly over the next months or wait a bit longer to see what happens?
Cheers

Vet

Either or, the market is so unpredictable. But if you're in it for the long haul then there's no time like the present

Malthusian

When you say "see what happens" you mean "hope that the market goes down again", because nobody waits a bit longer so they can buy at a higher price. Did you not learn your lesson the first time about holding cash in the hope that markets fall?

A lot of people sold 100% at the bottom in your position, so focus on the positive. That way you'll be less likely to sell anything at the bottom of the market the next time this happens (which it will).

As you have a lump sum available, DCA is market timing lite. What would you do if you DCAed for twelve months and twelve months later, after you were 100% invested, another wave of coronavirus or a credit crunch hit and the market dropped 20% again?

Sheriff_Fatmen

Nah, wait for the correction, it'll be along shortly (before Christmas) 

EdGasketTheSecond

Gold, silver, and related mining stocks are the way to go

Malthusian

Sheriff_Fatmen said:

Nah, wait for the correction, it'll be along shortly (before Christmas) 

Why didn't you warn us about the February crash?

ChopperST

Are you invested above your risk profile?  How do you know you wont react like that again?

paul235

The share price rises do not reflect economic realities so will inevitably fall.

Prism

EdGasketTheSecond said:

Gold, silver, and related mining stocks are the way to go

Don't forget FTSE 100 daily shorts. How is that going for you by the way?

Bravepants

paul235 said:

The share price rises do not reflect economic realities so will inevitably fall.

Are those the economic realities brought about by the continued lock-down, which every man and his dog is now ignoring following the Cummings debacle? The traffic outside my house at the moment demonstrates a case of "Lock-down? What lock-down?" I think the "threat" of fines from a police force suffering from a pre-existing staff shortage are now no real threat at all. If you can send small kids to school we can all go shopping in Ikea right?

BrockStoker

paul235 said:

The share price rises do not reflect economic realities so will inevitably fall.

What's the old saying.. The market can remain irrational longer than you can remain solvent?