Unless you bought stocks since November, you're still ahead

[Recursion]

I love seeing people blame Trump for stuff but this is a pet peeve of mine. Unless you bought some stocks between November and now, you're still ahead; you didn't "lose money" in these falls. People who bought when the DJIA was at 18K are freaking out like they've lost something.

[Rorey]

1. My one is down, but unless I sell it, I haven't "lost money"

Isn't that how it really works? If you don't sell, it doesn't matter, unless the company goes kaput, which happened with some other stock I owned.

Obviously, I'm not very educated about it, which is why I don't own much.

[Lucid Dreamer]

11. Got time to stick around? Do some education investing.

I haven't run the numbers since about 1995 so this may not hold true since then, but I am pretty sure it is still good advice.

It was in a paper I wrote called The Worlds Worst Investor.

The premise was that The WWI was unlucky enough to put all his investment money for the year in one purchase of the General Market [think DOW or SP500] on the highest day of the year, the worst time to do so obviously. Each year same thing.

Then starting 10 years later he somehow needed to liquidate the 10-year old investment on the day that was somehow so unlucky as to be the lowest day of the year.

The poor guy, whether a Bad Investor or just Unlucky Schmuck, still made money.

So time is your friend. Nobody could be a worse investor than The WWI.

Note- the buy/sell indices were not adjusted for inflation.

[Rorey]

20. I'm glad I don't have a lot

I have CSCO. Over the last five years, it peaked last year at $57.36. On Monday it was $46.30, and just now it's $40.04. I can't sell it at this point even if I want to, because I still own it jointly with my ex-husband. I'm in the process of trying to get it transferred, but the banker who did the Medallion Signature Guarantee on the forms apparently is an idiot and didn't apply her stamp correctly and the company that processes transactions wouldn't accept it. So now I have to submit a check for $50, along with copies of our IDs, which means that I'll again have to have contact with my ex-husband. I'm practicing "no contact" right now because it's best for my mental health. We have to have contact at some point in the next few months for another matter, so my plan is to wait and handle everything that I have to handle with him in one fell swoop.

I guess I could contact the company that processes transactions (Computershare), and see if there's a way around having to submit a copy of my ex-husband's government issued ID, but I'm sure they're pretty busy right now handling panicked investors' stock dumping. So maybe I'll just be kissing my CSCO stock goodbye. Seriously, though, we bought it a long time ago, probably around 2003, so I don't have a problem with hanging onto it. I'm not freaking out about it. My brother had tried to talk us into investing some other money that I came into in more stocks, but my then-husband was driving me crazy with his freaking out on a daily basis whenever a stock would drop a few cents/dollars. Instead we bought run-down houses and renovated them for rentals. We split those in the divorce, so now I'm an unwilling landlord. I do NOT enjoy being a landlord, but the return on investment seems to be pretty good. If I were to sell the houses, I'd have to live off that money. I don't like that idea. The way it is, I figure I can live off of the rental income and then when I die my kids can do whatever they want. They're not going to want to be landlords, so I imagine they'll just sell them.

[onenote]

21. And it depends on what stocks you own.

The Dow dropping 10 percent doesn't mean every stock dropped by that amount.

If you own stocks in transportation or hospitality industry companies, the hit is much greater. I think American Airlines is down over 25 percent in the past 3-4 weeks. Cruise lines, hotels, etc. also have been clobbered.

On the other hand, stocks in "stay at home" entertainment companies -- Comcast, ATT, etc. have declined but only 3-5 percent. And pharmaceutical and some other companies are weathering the crisis, sometimes seeing rising stock prices. Clorox is up over 8 percent.

[Rorey]

23. Yeah, I really should look into buying some Clorox stock

I think it'll be going up substantially.

[mr_lebowski]

2. Speak for yourself ... I just had to put my Limo Driver on furlough until next Wednesday (nt)

[Rorey]

24. That really sucks

I'm so sorry that you have to go through that.

[SunSeeker]

3. I did, and lost money, so I put it all in a bond index fund. So today's dive didn't affect me.

I figured I'll keep my 401k im that bond fund until the market stabilizes. I'm retired and can't risk it.

Are you telling people to stay in stocks?

[Recursion]

4. I'm saying people should basically forget that they have retirement accounts

Put it in there, have it move from equities to fixed income on a predetermined schedule based on your age, and don't mess with it. Even the largest four consecutive point drops in history only managed to wipe out the gains since 3 months ago.

[yellowdogintexas]

10. it is comforting to go to the yahoo financial section

bring up the various indexes and then reset the graph for "max" which will go back past even 2008. Makes on feel much better. Much.

I actually have one 401k with more in it now than there was at the end of December. I was very surprised

[AlexSFCA]

6. now is a good time to move from bonds to stocks

buy low

[SunSeeker]

7. You think this is the bottom?

The pandemic is just getting started.

[AlexSFCA]

9. not bottom but good enough dip

I think it’ll go back up by summer.

[msongs]

5. had a small amt to invest last fall, glad I left in the bank with non existant interest rates

[MoonlitKnight]

8. It is an indicator

First people avoid shopping, dining out, concerts, sports etc.
That leads to business closures, layoffs etc.
That leads to people not being able to afford to shop, eat out, concerts, etc.
More business closures and layoffs.
People can’t pay for cars and mortgage. Foreclosures ensue.
Elect a Democrat to fix it.
Things get better.
Elect a Republican to fuck it up again.

[ribrepin]

12. That's the way it always goes

[unc70]

13. DJIA is lower than 12 months ago, not just November

S&P 500 is still roughly even with November. Futures at the moment indicate another significant drop at the opening.

[Recursion]

14. I was probably looking at S&P since that's closer to most funds' composition

Whether it's November or March the point is if you've had your money in for any realistic amount of time you're still fine.

[unc70]

15. About to erase two years worth of gains

Futures currently looking at over -600 at opening. We are rapidly matching the 2008 financial crisis with no end in sight.

[Recursion]

16. I agree my optimistic take will stop being true after a couple more sessions like that

So, yeah

[onenote]

18. Last June the Dow dropped to 24,819

[unc70]

25. Yes, and it went below that this morning

So lower than 12 months ago and now lowest point during the twelve months. And still in free fall.

[beachbumbob]

17. you be further ahead had you sold your positions on Monday, right?

[Recursion]

19. Woulda, coulda, shoulda

If your stocks are worth more than you paid for them, there is no sense in which you have "lost money".

[Sancho]

22. Buy now!!!

...mask manufacturers
...vaccine distributors

ah hell...too late, the Wall Street wizzes have already been there are done that...

[Squinch]

29. Cruise ships. But not quite yet. In three weeks.

[Squinch]

26. I lost 40% of my savings in 1998-99, again in 2008. I know all about how it comes back, but

last time it took a while to do so. My blood pressure just can't go through that again.

I have my stuff in dopey fixed things in which I average 5% or less. Fine with me.

[CountAllVotes]

28. Same here

I never never lose, never.

I don't make a whole lot but I NEVER lose.

I'm in CDs and savings bonds.

I am in no position to be anywhere near the stock market with my poor health.

Plus, my depression era parents made me never forget about 1929.

[PoindexterOglethorpe]

27. I like to point out that

while the Dow periodically reaches new highs, it never reaches new lows.