Selling shares that have plummeted???

W

WGT

Registered User
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193
Hi,

Got a letter from my stockbroker



It stated the "Given the steep fall in stock market valuations, you may consider that your holdings are no longer worth keeping.".


I had noticed this, but thought that by selling them now, I would be realizing the loss. Therefore I was going to hold on to them in the hope that they had bottomed out and would improve.
I don't know how flawed this line of thought is.


Would appreciate any guidance.
 
Hi WGT

I got that too today (from Campbell O'Connor?) and it struck me as odd. They were for shares held in Crest and maybe the point was that the costs of Crest might not be justified.

It could be that they have too many small accounts and it's expensive for them to administer.

Your decision to hold a share today at €1 should not be affected by whether you paid 10 cents or €10 for that share. If it's worth €1 you should keep it, irrespective of what you paid for it.

You should have a balanced portfolio of assets including shares.

I have sold shares which fell dramatically, because they were too small a part of my portfolio. I have also partially sold some shares when the dramatic rise meant that I was overweight in them.
 
Hi Brendan,
Yes it came from Campbell O' Connor. I think I'll sit tight as surely the shares I have can't fall much further. In any case, I'm in for the long haul and I don't need the money urgently.
I thought it was odd too. As you say it could be that they want small account holders to cash in. Well, that's their problem I guess.
 
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