Comments on: How To Handle Tremendous Investment Losses

By: Geordie

Geordie — Sun, 13 Dec 2009 17:10:23 +0000

I don’t care how much the economy has “rebounded.” I will never invest in stocks again. I just got word a few days ago that a small community bank I had inherited a lot of stock in, is going bust. It’s failing. For me to ever invest in stocks again would be like getting back together with an abusive spouse. It’s unhealthy, and just the wrong thing to do, and only spells more trouble down the line. Investing in the stock market is not for the lower or middle class. Creating ways to invest in yourself is the only real way to go.

By: savings

savings — Tue, 05 May 2009 11:30:37 +0000

If I hadn’t learned that stocks just aren’t my thing…as a a professional trader I would be seeing this as a potentially buying opportunity. It’s really the 50+ crowd who are thinking…”what is really goping on..

By: Geordie

Geordie — Wed, 08 Apr 2009 16:05:54 +0000

In January, right before the Inauguration, I cashed out of the stock market, (I’m with Merrill Lynch), thinking I would re-invest (my advisor was on board for this). Then, I just thought I’d had enough of the roller coaster ride (after loosing 200k in the fall). The loss really made me feel sick to my stomach. So I’ve put most of my money in a 6 month CD (@ 2.5%) to give me a solid, safe return while I re-think and re-imagine how I want investing to be for me (I’m 41 years old). I don’t have a large income (I’m a teacher)… this money was an inheritance I received 3 years ago and is really the only nest egg I’ll ever have, as, like I said, I don’t have some big six figure income to just keep replenishing the losses with. After drinking the Merrill Lynch Kool Aid that told me proper diversification would essentially protect me from big losses, and having my advisor work with me to discern my level of risk, which wasn’t very high as it turns out – only to see that just get blown in the dust when last October hit – I don’t know where to turn anymore, or who to trust. Could I ever trust a Financial Advisor again????? They all sound so smart, so confident. They have so many charts and graphs, facts and figures (and Mr Meef I’m talking about you here, too)… they are very convincing. But at the end of the day, they will totally let you loose your nest egg. All the while collecting their pay checks and bonuses. I’m not so naive anymore… and it kinda hurts! I want to make the most of what I have left, but I also think that anyone who is under the age of 50 really needs to take a long hard look at what has happened. Because something like this could really happen again when you are in your 60’s. Do you really want to keep drinking the Kool Aid now, only to have the majority of your life savings go down the drain when you need it most?

By: Phil Rup

Phil Rup — Mon, 06 Apr 2009 18:03:17 +0000

@ Goran Web: I don’t think it’s a good idea to buy gold/silver when prices are greatly inflated and hovering around historic highs, even with the intent to sell in 1 – 3 years. This is another flavor of market timing, except — buying in high. Disclaimer….if you think the economy will continue to decline into a very long, downward spiral, then it is still a good time to buy precious metals.

@ Eve’s Bank: working the farm *is* the work. But the implication is correct, “another job” wouldn’t really be practical, depending on the scale of operation.

@ SJ, Chris: It’s not just the $40 Trillion…that money would have to come from somewhere, and that would likely be 1) additional gov’t debt, 2) [eventually] taxes. Further, there comes a point when foreign interests are no longer willing to buy our debt – there are hints of that now. Then, if by some miracle, you raised the money, you would then greatly accelerate inflation, national debt, taxes…so the $1million in each pocket quickly loses value, and you hasten the demise of U.S. financial sovereignity. Yes, we are heading there, but I for one don’t want to speed it up.

By: Jennifer

Jennifer — Mon, 06 Apr 2009 10:20:54 +0000

@Debtkids As long as the leave valuable comments, I don’t think its spam. Have a look at the whole comments on this post each one of them comes from a site. I do not support companies adding irrelevant comments irrespective of a Big one or small one.If HSBC want to share information that will help people by using a “product name” fine, as long as they don’t repeat it over and over again in one post or site.

Great post though.

By: Weekly Round Up | Master Your Card

Weekly Round Up | Master Your Card — Mon, 06 Apr 2009 07:18:08 +0000

[...] Jeremy @ GenX Finance talks about handling tremendous investment losses. I especially like the tip to forget CNBC and think [...]

By: Eves Bank

Eves Bank — Fri, 03 Apr 2009 16:39:03 +0000

@ Goran Web: getting a farm? – how are you going to manage growing crops and taking care of animals? – how are you going to work at all?

By: Weakonomics Web Junction: April Fools You and Me | Weakonomi¢s

Weakonomics Web Junction: April Fools You and Me | Weakonomi¢s — Fri, 03 Apr 2009 13:14:20 +0000

[...] Generation X Finance has a guest post on how to deal with the emotions of losing money in the stock market. As a behavioral finance guy, I love stuff like this. It also has a fantastic quote on what to do with CNBC. The blog’s owner, Jeremy, also had a baby this week. Congratulations Jeremy! [...]

By: Goran Web

Goran Web — Fri, 03 Apr 2009 12:00:18 +0000

@ Debtkid – How right you are! This is a bit of a first for me, seeing this! Hahahahahah

On a more relevant note all I can say is to invest in tangible commodities like gold and silver, and sit on it for a year or three. Getting your own farm and being as self sustainable as possible food-wise isn’t a bad idea either.

By: The Canadian Finance Blog

The Canadian Finance Blog — Fri, 03 Apr 2009 10:04:17 +0000

Friday Links…

Thicken My Wallet dissused high-yield bonds.
My Findependence Day points out that you should understand what you investing in.
Financial Highway showed us how to set financial goals.
Generation X Finance had an article on how to handle tremendous inve…