let's say I have $100,000 worth AMZN stocks and it is almost 50% of my portfolio. so I want to diversify. is right now a good time to do that while entire market is down, so I incur less capital gains and also get other stocks (let's say VTI) at lower price.
so basically sell at lower price, buy another stock at lower price. less capital gains, less tax and I diversify
Does it make sense to diversify AMZN right now?
byu/im_maulik ininvesting
Posted by im_maulik
3 Comments
This might be a good low point to make some changes
Amazon is one of the few blue chip companies that are selling at a reasonable valuation. If it offsets a tax burden on you i would never sell at these levels.
Panic selling under the half effort disguise of tax loss harvesting is dumb. VTI is just burning money because VTI is maybe 10% down and AMZN is around 25% down from all time highs. You’re burning 15% value for max $3,000 for tax loss harvesting.
The only other assets that are down 25% are equally volatile assets.
The time to derisk was half a year ago by buying less risky assets.