35% gain from an etf in a month

[Deleted User]

Moe_The_Bartender said:

 the point where you have enough, you don’t need to take unnecessary risks.

But what if you feel you're not ready for the rocking chair?

Stargunner

Moe_The_Bartender said:

Stargunner said:

Audaxer said

I think it would make sense in a lot of cases to take the profit either for spending now or at a later date, or moving the profit to a less volatile investment like a wealth preservation fund. 

I will just keep it for now and enjoy the ride. I certainly wouldn’t want to sell some of it to put the money in a wealth preservation fund when there are s good choice of actively managed growth funds/IT’s that would give me a much better return.

Or a greater loss. This is the point of wealth preservation funds. It depends where you are on your investment journey and if you have reached the point where you have enough, you don’t need to take unnecessary risks.

I have still got more than 10 years to go before I will be touching it so I can continue to invest in the so called volatile funds, although over that timescale they are generally not volatile at all.

Thrugelmir

Stargunner said:

Moe_The_Bartender said:

Stargunner said:

Audaxer said

I think it would make sense in a lot of cases to take the profit either for spending now or at a later date, or moving the profit to a less volatile investment like a wealth preservation fund. 

I will just keep it for now and enjoy the ride. I certainly wouldn’t want to sell some of it to put the money in a wealth preservation fund when there are s good choice of actively managed growth funds/IT’s that would give me a much better return.

Or a greater loss. This is the point of wealth preservation funds. It depends where you are on your investment journey and if you have reached the point where you have enough, you don’t need to take unnecessary risks.

I have still got more than 10 years to go before I will be touching it so I can continue to invest in the so called volatile funds, although over that timescale they are generally not volatile at all.

Let us know when you reach the milestone. A decade in investing is a long time. With more indexes now than listed stocks. Going to be volatility in stocks which are in numerous passively tracked ones. 

Audaxer

ZingPowZing said:

Moe_The_Bartender said:

 the point where you have enough, you don’t need to take unnecessary risks.

But what if you feel you're not ready for the rocking chair?

Then he could cash in at least some of the profit and enjoy spending it.

Cus

Sometimes I will 'take profit' like I did with this ETF as I felt that the acceleration of the price won't continue.  It might still keep rising, but perhaps I could invest the profits into something if feel might accelerate better. However I don't feel comfortable selling it all and going all into another investment, in the same way I don't put all my eggs in one basket.  Is this rebalancing?

[Deleted User]

Audaxer said:

ZingPowZing said:

Moe_The_Bartender said:

 the point where you have enough, you don’t need to take unnecessary risks.

But what if you feel you're not ready for the rocking chair?

Then he could cash in at least some of the profit and enjoy spending it.

Yes, but "top slicing" or "rebalancing" advocates cashing in from the better performing investments. 
Why?

AnotherJoe

Audaxer said:

AnotherJoe said:

Moe_The_Bartender said:

I think it depends why you top slice. As a 71 year old in drawdown, I’m top slicing my better performing funds like Fundsmith and moving into wealth preservation trusts (Capital Gearing Trust and Personal Assets Trust). To me, it isn’t a question of moving a well performing fund into a worse one but a case of ensuring that my investments meet my objectives. That said, I think that Fundsmith has pretty good defensive qualities already.

i have about 2% in INRG and am pretty pleased with it.

Fair enough but that's not what I thought top slicing was.  Maybe I'm wrong. I thought it was simply reducing something simply because it's gone up a lot recently. 

I recently sold a lot of Apple, first because it was making up a ridiculous amount of my portfolio and second because I wanted the money for something. Whether that be a house  (my case) or different investment objectives (yours and mine) I'd call that more rebalancing. Note the OP just started out saying "it's gone up a lot so shall I sell some?" So my answers / understanding of top slicing is in that context. 

( and I say no because it's going to go up a lot more) 

How do you know it's going to go up a lot more? As dunstonh said above "Anything that goes up by that amount in a month can go down by that amount in a month."

Theres a strange argument for not investing in stuff that can go up a lot in there???
I think it would make sense in a lot of cases to take the profit either for spending now or at a later date, or moving the profit to a less volatile investment like a wealth preservation fund. 

"know" ? Obviously i dont "know". No one can. You  just go with the probabilities. Ask yourself, in 10,20,30 years will there be more solar & wind or will we have gone back to oil coal and gas? So, what are you going to invest in?

Trying to sell it when its gone up and then buy back when its gone down comes back to daytrading or market timing. Do i think it will be higher in 5,10,15 years. Of course,  thats why i invested in it, I'd be crazy to invest in it if I thought it wouldnt do that ! Will it go up or down tomorrow? No idea.

As for "wealth preservation" suppose I'd  taken £10k Apple off the table in 2010 on account it went up 50% or so, Kiss £100k goodbye today. For each £10k. Yeh that £10k would have been preserved. At the cost of £90k growth (or so, who's counting exact numbers)

Why didnt i trade it, top slice it, daytrade it as is being suggested to the OP? I'm not that good. I believed it would go up long term (for a variety of logical reasons not just a belief without reason). So, i held it.

Same for INRG. Unless it was just a short term trade. In which case sell it all and put it on the next sure thing.

Thrugelmir

ZingPowZing said:

Audaxer said:

ZingPowZing said:

Moe_The_Bartender said:

 the point where you have enough, you don’t need to take unnecessary risks.

But what if you feel you're not ready for the rocking chair?

Then he could cash in at least some of the profit and enjoy spending it.

Yes, but "top slicing" or "rebalancing" advocates cashing in from the better performing investments. 
Why?

Why has this ETF performed so well?  What's driving the price upwards in such a short space of time? 

Audaxer

AnotherJoe said:

Audaxer said:

AnotherJoe said:

Moe_The_Bartender said:

I think it depends why you top slice. As a 71 year old in drawdown, I’m top slicing my better performing funds like Fundsmith and moving into wealth preservation trusts (Capital Gearing Trust and Personal Assets Trust). To me, it isn’t a question of moving a well performing fund into a worse one but a case of ensuring that my investments meet my objectives. That said, I think that Fundsmith has pretty good defensive qualities already.

i have about 2% in INRG and am pretty pleased with it.

Fair enough but that's not what I thought top slicing was.  Maybe I'm wrong. I thought it was simply reducing something simply because it's gone up a lot recently. 

I recently sold a lot of Apple, first because it was making up a ridiculous amount of my portfolio and second because I wanted the money for something. Whether that be a house  (my case) or different investment objectives (yours and mine) I'd call that more rebalancing. Note the OP just started out saying "it's gone up a lot so shall I sell some?" So my answers / understanding of top slicing is in that context. 

( and I say no because it's going to go up a lot more) 

How do you know it's going to go up a lot more? As dunstonh said above "Anything that goes up by that amount in a month can go down by that amount in a month."

Theres a strange argument for not investing in stuff that can go up a lot in there???
I think it would make sense in a lot of cases to take the profit either for spending now or at a later date, or moving the profit to a less volatile investment like a wealth preservation fund. 

"know" ? Obviously i dont "know". No one can. You  just go with the probabilities. Ask yourself, in 10,20,30 years will there be more solar & wind or will we have gone back to oil coal and gas? So, what are you going to invest in?

Trying to sell it when its gone up and then buy back when its gone down comes back to daytrading or market timing. Do i think it will be higher in 5,10,15 years. Of course,  thats why i invested in it, I'd be crazy to invest in it if I thought it wouldnt do that ! Will it go up or down tomorrow? No idea.

As for "wealth preservation" suppose I'd  taken £10k Apple off the table in 2010 on account it went up 50% or so, Kiss £100k goodbye today. For each £10k. Yeh that £10k would have been preserved. At the cost of £90k growth (or so, who's counting exact numbers)

Why didnt i trade it, top slice it, daytrade it as is being suggested to the OP? I'm not that good. I believed it would go up long term (for a variety of logical reasons not just a belief without reason). So, i held it.

Same for INRG. Unless it was just a short term trade. In which case sell it all and put it on the next sure thing.

I wasn't suggesting day trading or selling to buy back when it has gone down in value. He invested £10k in this ETF in May and it has doubled in value in 5 months, so I don't see anything wrong with taking advantage of that gain. He could do that by either selling enough of it to rebalance his portfolio to original weightings, or he could cash in some of the gain to spend on what he wants. In either case his portfolio would still have more than the original amount invested in the ETF, so I can't see anything wrong with that?

Stargunner

This etf is still producing a stellar performance. Up another 50% in the last 3 months and up 170% since April