Let's look at three of the best reasons to avoid selling stocks during a stock market downturn. If you sell stocks after they've lost value, you'll reset their holding periods when you reenter the market, meaning you'll have to wait an additional year to again qualify for long-term treatment. By refusing to sell in the midst of a downturn, you'll maintain your existing holding periods. While it's clear stock market downturns aren't good for the base of your portfolio, they do present valuable opportunities to buy in. You'll avoid acting on emotionAny time you sell stocks in a panic, you're acting based on short-term market movements while likely abandoning a long-term vision for your finances.

Source: Forbes June 16, 2022 17:24 UTC