k_babysit4exit

No investor can forever avoid cut-loss. Some cut loss too early. Some cut loss too late (me?). Both are less than wise. My BrE criteria is simple, sustainable, modest… but arguably too rigid when I face a decision to cut loss.

— buy-n-hold till we beat riskfree benchmark .. some investors use the riskfree rate as benchmark but it sets an uncomfortable, often insurmountable, high bar.

— buy-n-hold-to-BrE .. my traditional habit in many markets [rEstate, U.S. stocks, individual bonds, ]

However, this habit may not be effective in mufu, partly due to expRatio. A few times I paired up two mufus A/B, then used a $200 profit from A to get rid of the lousy mufu B, releasing myself from my BrE criteria. This  liberates myself from guilt. Fairly Rational if A/B are somewhat “related”… grey area.

Q: Does the asset class have potential to recover despite the exp ratio + currency depreciation?