Market Falls Back to Annual Line, Decline Exceeds 20%
Taiwan stocks plunged recently, closing at 39,701.64 points on the 6th, down 1,873.08 points, with the index falling back to near the annual line. Measured from the high, the decline exceeds 20%. Compared with the previous correction from the high to near the half-year line with a drop of about 18%, this pullback is larger, and the market is also watching follow-up developments as the National Stabilization Fund is expected to enter the market.
Two Consecutive Lump-Sum Buys Stuck at Relatively High Levels
An investor describing himself as a novice posted on the PTT Stock board under the title "For those who already invested in a lump sum, should I realize losses and rebuy immediately?", saying he had twice bought market-cap ETFs in lump sums without timing the market, both at historically relatively high and second-high levels. Although he understands long-term holding could wait for a market recovery, seeing others enter during the decline still left him envious and self-doubting.
Considering Realizing Losses to Rebuy or Staying Put
The original poster said that during the previous pullback from the high to near the half-year line with a drop of about 18%, he chose to ignore the paper losses and continued holding. This time, with the market down to near the annual line with a decline of over 20%, plus the expected entry of the National Stabilization Fund, he judged that a relative low should not be far away, and therefore considered whether to first realize losses and sell before buying back immediately, or to leave his existing holdings unchanged.
Netizens Warn About Transaction Costs and Bottom-Guessing Risks
The post sparked discussion, with most netizens questioning the need to sell and rebuy, noting that trading again incurs handling fees once more, holding spot shares carries no interest pressure, and every decline feels different in the moment but looks similar after experiencing many. Others reminded of experiences where the market rebounded right after selling, arguing that buying market-cap ETFs for long-term holding offers a higher win rate and that short-term bottoms should not be guessed. Other netizens explained that, using 100 falling to 80 as an example, it is the same as initially holding 80 in cash, and selling and rebuying does not increase assets, only turning unrealized losses into realized losses, and avoiding a fall could also mean missing a big rally. If one once bought at the very top, it shows one may not necessarily catch the low. The original poster later updated that, after recalculating, he found it was not worthwhile and that he might not buy at the very bottom, so he decided to keep his existing holdings. Investing still involves risks, and investors should judge independently and evaluate prudently.