What does it mean when your total return goes from negative to positive
4/18/2024 12:01am
When your total return goes from negative to positive, it indicates that your investment has started generating profits. This can be a positive sign, as it suggests that your investment is performing well and may continue to do so in the future.Investors often use metrics like total return to evaluate the performance of their investments. A positive total return suggests that the investment has appreciated in value over a specified period, while a negative total return indicates a loss.If you have experienced a negative total return and are considering selling your investment, it's important to carefully evaluate your reasons for doing so. If the investment has potential for growth and you believe it will recover from its current negative phase, it may be worth holding onto. However, if you have concerns about the investment's future prospects or if you need the funds for other purposes, it may be prudent to sell and reallocate your capital.Ultimately, the decision to hold or sell an investment should depend on your investment strategy, risk tolerance, and the specific circumstances of the investment. It's always advisable to consult with a financial advisor before making any investment decisions.