Given the recent Fed's announcement, should I sell 50% of my stocks and buy them again at a low after the rate hike? Why do some people still insist on holding on to their stocks if they can profit ?

Invest for the long term

Every transaction has a cost.

Unless your broker doesn’t charge commission for each transaction, then the more transactions you do will have higher costs.

I think the most common answer to this is that most people prefer to hold onto their assets because most people acknowledge two things:

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1) Over a long enough time horison, holding typically outperforms trying to trade short term trends

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2) Most people do not have the skills to trade short term trends or macro trends

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Power to the day traders but most market participants aren't that. Don't over invest or get over exposed. Don't be a forced seller because the market went against you.

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Of course some people just fall in love with their positions and can't sell even if reality is screaming otherwise to them but with a responsible portfolio size and patience, its better to find something else to do while the market sorts itself out. Especially if your assets pay dividends or generate income.

A rate hike does not gurantee the stock market will go down. If it's so obvious, all we have to do is borrow on margin and take a leveraged short postion x9999999 and we will be billionaires next week.

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Unfortunately the market does not work simply based on outcome of 1 or 2 events.