Stocks taking a dive

[vraiblonde]

Okay, I've lost $300 since Thursday. My stocks are solid - GE, Proctor and Gamble, Disney, stuff like that with no real risk factor. They fluctuate a bit, but there's no big chance that they'll go belly up.

However, I'm considering selling the whole shebang and being done with the stock market. Not sure what I'd do with the money, though. So someone talk me out of selling, or tell me why I should.

 

[MMDad]

If your strategy is to sell low, then do it. I've never understood why people say "My value has gone down! I need to sell now!"

Buy low, sell high. Easy rule. Don't break it. Don't sell when the price goes down, sell when the price goes up.

If you can't stand the volatility to wait it out, at least wait until the value is back up, bail out, and invest in something less volatile.

You have 10 more years until you are 65. You have time to wait it out, and it will almost always be better to do so.

 

[cattitude]

You have 10 more years until you are 65.

Talk to you in three days.

 

[MMDad]

Talk to you in three days.

testing to see if I'm banned yet.

 

[vraiblonde]

You have 10 more years until you are 65.

You're right - it would be stupid to sell now. It's not like I've truly lost money - I'm still up 15% over my original investment.

 

[Lugnut]

Okay, I've lost $300 since Thursday. My stocks are solid - GE, Proctor and Gamble, Disney, stuff like that with no real risk factor. They fluctuate a bit, but there's no big chance that they'll go belly up.

However, I'm considering selling the whole shebang and being done with the stock market. Not sure what I'd do with the money, though. So someone talk me out of selling, or tell me why I should.

Nah, hold on for the long haul. Unless you need the money now, there's no reason to short yourself.

What's your total return for the year? My stocks have taken a pretty good wompin over the last week or so but I'm still up nearly 90% for the year. The companies I hold haven't changed, they still have the same intrinsic value they had before the slump.

The market is fickle. :shrug:

 

[MMDad]

You're right - it would be stupid to sell now. It's not like I've truly lost money - I'm still up 15% over my original investment.

If you're up, then you meet the buy low sell high test. Now it's just guessing if Patch is right and prices go back up, or your gut is right and now is the time to sell.

Some people say you should set a sell price when you buy a stock, and sell it when it gets there. That takes the whole gambling aspect out of the equation.

As for me, I saw 14,000 as too high, so I pulled my $$$ out of stocks and into a fund similar to what Patch advocated while the market was up there. I think we're going to have something happen in Iran, North Korea, or Pakistan, or another terrorist incident, and it's going to hit the market hard. I don't have the stomach for the volatlity right now.

Sorry about the age thing, but I couldn't resist.

 

[vraiblonde]

Now it's just guessing if Patch is right and prices go back up, or your gut is right and now is the time to sell.

Eh - the only reason I want to sell is because I'm getting antsy. The fluctuation isn't that big of a deal for me, because of the low-risk stocks I invest in. The worst of them is Lowes, which split awhile back and never regained it's pre-split value.

So you've talked me out of selling.

 

[Sonsie]

Think of them as a long term investment. Don't even took at them during downturns like this, it only makes you all twitchy. Think of it as a good time to buy instead. Go bargin hunting.

 

[Larry Gude]

Stop...

Okay, I've lost $300 since Thursday. My stocks are solid - GE, Proctor and Gamble, Disney, stuff like that with no real risk factor. They fluctuate a bit, but there's no big chance that they'll go belly up.

However, I'm considering selling the whole shebang and being done with the stock market. Not sure what I'd do with the money, though. So someone talk me out of selling, or tell me why I should.

...LOOKING AT THEM.

Buy and forget about it. For your purposes stocks are very much a long term proposition.

Look at Google. You got sick of the fluctuation and lost far more than any $300 by being impatient.

You make good picks for good reasons. You make your own argument as to why to keep them. Stick with them and...

...QUIT LOOKING AT THEM

 

[oldman]

My 1st wife gave me one share of Budweiser in 82 I think. I've held onto it all these years simply because it hasn't cost me a cent and it's something I can impress my friends with. I'm not in it for moneys sake. In the early years it split a few times and I've let them reinvest my dividends which has only cost me pennies. What cost her maybe $22 then has now turned into over 40 shares worth over $2,000 now. And I notice it is on the rebound this afternoon. Had I been smart or had the desire I should have bought more along the way but it's only a novelty to me and not something I'm expecting to make a killing off of.

 

[DoWhat]

You never lose money in the stock market, until you sell.

Keep it and let it ride.

 

[Dutch6]

Okay, I've lost $300 since Thursday. My stocks are solid - GE, Proctor and Gamble, Disney, stuff like that with no real risk factor. They fluctuate a bit, but there's no big chance that they'll go belly up.

However, I'm considering selling the whole shebang and being done with the stock market. Not sure what I'd do with the money, though. So someone talk me out of selling, or tell me why I should.

Only $300? I've lost 50 times that. I'm in for the long haul so it happens. I watch mine every day but it doesn't kill me whn this happens. I'll still retire on time. Hang in there girl!

 

[Larry Gude]

I hear...

...TV's are hot right now in advance of an expected rise in big screen rentals.
So, buy Sony, LG, etc. before they take off.

 

[truby20]

Okay, I've lost $300 since Thursday. My stocks are solid - GE, Proctor and Gamble, Disney, stuff like that with no real risk factor. They fluctuate a bit, but there's no big chance that they'll go belly up.

Drop DIS and buy Citi (C); they have been punished way too much over this subprime mortgage fiasco. As long they don't drop their dividend (6%) they are headed up soon.

....load up on some iRobot (irbt) too; with American's continuing reluctance to accept human deaths during military conflicts we are going to need lots of these guys

 

[Rael]

"The Bank of England Governor has issued an extremely unusual warning on world stock markets, indicating that shares may be heading for a major fall."

"Mervyn King said the full impact of the credit crunch had not yet been felt on equity markets in the West and in developing countries, saying that the possibility of share price falls were one of the biggest risks facing the world economy."

"His warning came as the Bank gave a firm indication that it plans to cut interest rates as many as three times over the next two years to protect Britain's economy in the wake of the credit crunch. The signal caused the pound to drop to a four-year low against the euro, with the single currency now worth 71.13p."

Markets poised for severe fall, says King - Telegraph

Meanwhile, a pack of shorts wait for the influx of sellers to ride it down wealthily. Isn't the message in this article...sell? Not saying the words are wrong, market may (as it stated) be heading for a fall. I'm no expert, but when I read articles like this I'm holding what I have, or looking for more buying opportunities. Call me half full for the long term!

 

[Kyle]

You're right - it would be stupid to sell now. It's not like I've truly lost money - I'm still up 15% over my original investment.

Only one ... He got off kinda easy.

 

[MMDad]

Drop DIS and buy Citi (C); they have been punished way too much over this subprime mortgage fiasco. As long they don't drop their dividend (6%) they are headed up soon.

They're only down 11% since you made this recommendation. If you're part of the "buy high, sell low" crowd, this was great advice!

 

[Agee]

They're only down 11% since you made this recommendation. If you're part of the "buy high, sell low" crowd, this was great advice!

Boo-Ya!

According to Kramer, stay away from bank stocks, with the exception of "Wells Fargo"

Disclaimer: I've kept an eye on some of the stocks and markets he has reccommended and watched them tank!

 

[beerlover]

They're only down 11% since you made this recommendation. If you're part of the "buy high, sell low" crowd, this was great advice!

I heard on the news this morning that Citi is getting a multi-billion $$ influx of cash from some Abu-Dabi (sp) financial group to prop them up in return for about 5% ownership.

With all the volatility of the market and the shrinking value of the $, how will S&P-like mutual funds fare, i.e., Federal Thrift Savings Plan? Maybe I should be funnelling my money into CDs instead of the TSP for now?