Organic Investments

 

How Investors Should Be Thinking About Capital Gains Tax Today

During uncertain times, the mindset of an investor must switch from one of wealth accumulation to wealth preservation. This switch in mindset typically calls for a reduction in a portfolio’s exposure to riskier asset classes (such as stocks) and an increase in exposure to less risky asset classes (such as cash). In times of uncertainty, cash is king. During market panics, everything tends to sell off together as investors all try to reduce their risk at the same time, the “baby gets thrown out with the bath water.” This is why cash will dominate as an asset class during sell offs. This year alone we have witnessed two major sell-offs in the market: the first taking place from February 19th

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