2021 Exit Strategy

bcbgcbrcb · #1 08-30-2023, 01:44 PM

Thank you all for the advice thus far. So if I’m hearing correctly, the consensus is to continue selling off pretty much as I have been doing but don’t use those funds to buy back more cards to invest in. Glad I asked, that’s exactly what I’ve been doing all along. If I eliminate that part of it, will need to sell much less to survive. So, I guess the question then becomes, am I better off selling now all of those cards that I overpaid on back in 2021 and banking the money or holding on to them with the hopes that values come back one day closer to where they were when I bought them. I know, nobody has a crystal ball to know that, wish I did.

Either way, seems like the damage has already been done with no way to recoup those funds. Am I correct there? Just making better decisions going forward with investing the money elsewhere?

Peter_Spaeth · #2 08-30-2023, 01:47 PM

Quote:

Originally Posted by bcbgcbrcb

Thank you all for the advice thus far. So if I’m hearing correctly, the consensus is to continue selling off pretty much as I have been doing but don’t use those funds to buy back more cards to invest in. Glad I asked, that’s exactly what I’ve been doing all along. If I eliminate that part of it, will need to sell much less to survive. So, I guess the question then becomes, am I better off selling now all of those cards that I overpaid on back in 2021 and banking the money or holding on to them with the hopes that values come back one day closer to where they were when I bought them. I know, nobody has a crystal ball to know that, wish I did.

I think we are all telling you to sell them now and put the money someplace safer. What you paid is irrelevant, really, except to calculate gain or loss for tax purposes. The issue is how to best provide for the future, going forward.

Peter_Spaeth · #3 08-30-2023, 01:57 PM

Also, depending on the grades and above all the centering, those 101 Jordans might do better if you crossed them to PSA. Although the centering even on the high grade BGS ones might argue against that. But at equivalent grade, PSA will far outsell BGS.

oldjudge · #4 08-30-2023, 01:58 PM

Quote:

Originally Posted by bcbgcbrcb

Thank you all for the advice thus far. So if I�m hearing correctly, the consensus is to continue selling off pretty much as I have been doing but don�t use those funds to buy back more cards to invest in. Glad I asked, that�s exactly what I�ve been doing all along. If I eliminate that part of it, will need to sell much less to survive. So, I guess the question then becomes, am I better off selling now all of those cards that I overpaid on back in 2021 and banking the money or holding on to them with the hopes that values come back one day closer to where they were when I bought them. I know, nobody has a crystal ball to know that, wish I did.

Either way, seems like the damage has already been done with no way to recoup those funds. Am I correct there? Just making better decisions going forward with investing the money elsewhere?

No one knows what the future will be for card prices. What is likely, however, is that it will be volatile. What you need I believe is stability in cash flow. You can get that with short term fixed income instruments. I would not tie up funds in long term bonds because if interest rates continue to rise and you need to liquidate early you could lose money there too.

raulus · #5 08-30-2023, 02:00 PM

Quote:

Originally Posted by bcbgcbrcb

Thank you all for the advice thus far. So if I’m hearing correctly, the consensus is to continue selling off pretty much as I have been doing but don’t use those funds to buy back more cards to invest in. Glad I asked, that’s exactly what I’ve been doing all along. If I eliminate that part of it, will need to sell much less to survive. So, I guess the question then becomes, am I better off selling now all of those cards that I overpaid on back in 2021 and banking the money or holding on to them with the hopes that values come back one day closer to where they were when I bought them. I know, nobody has a crystal ball to know that, wish I did.

Either way, seems like the damage has already been done with no way to recoup those funds. Am I correct there? Just making better decisions going forward with investing the money elsewhere?

I think it depends on how badly you need the money to get by. Or in other words, how tight are you financially? Do you need to sell everything and cash out at today's values just to barely squeak by? Or do you have some cushion - and if so, how much?

If you've got some cushion, then you have the flexibility to let some of these pieces ride and not sell now. Pick some that make your heart sing, and that you hope will rise between now and when you need that portion of the money later. Sell the rest.

If you're really tight, with really no room to spare, then I agree with the others that it's a better idea to just sell everything now and invest in some short-term, low risk assets, like a money market fund or some CDs. No sense in risking your ability to survive on the cardboard market, particularly if you're talking about a window of a few months or a few years.

packs · #6 08-30-2023, 02:05 PM

I wouldn't hold out for any return to the market of 2021. The market was at an all time high then and even though cards may one day approach those values again, it won't be any time soon.

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