The Stock Market - HELP!!!

Log in / Sign Up

List of Forums + New Post Recipe Box Usergroups Following My Posts Bookmarks

Private Messages Advanced Search Rules New User Guide FAQ Advertise Contact Us

Forum -> Household Management -> Finances

Previous 1 2

View latest: 24h 48h 72h

amother

Bronze

Mon, Aug 24 2015, 1:59 pm

My dh made $40k this year. When his profit dropped down to $31k, he pulled out. We need this money to cover our tuitions so we couldn't take chances. In another two weeks maybe we will go back into the market.

Amarante

Mon, Aug 24 2015, 3:15 pm

Best advice is to do nothing.

http://www.nytimes.com/2015/08.....email

Sanguine

Mon, Aug 24 2015, 3:27 pm

My stockbroker told me to sell some of my stocks (which I hated to do when they lost money - too bad she didn't tell me this last week) and to just buy more shares in some of my stocks with that money - The ones that she expects to recover quicker. In the end, it makes no difference cause everything went down again Sad

spikta

Mon, Aug 24 2015, 3:58 pm

*You* are the greatest danger to your investments. Not some random blip in the Asian markets. If you get nervous and pull out, and then you'll lose real money, not just theoretical money.
If you are this worried about your money, please stop checking the value of your investments all the time. Buy an index fund, and forget about it.

Fox

Mon, Aug 24 2015, 4:21 pm

spikta wrote:

I can't like this enough!

I once read an article about a very exclusive broker/advisor who claimed anyone can make money over the long term; his primary job is talking his clients out of crazy ideas and calming them down when the market gets rowdy.

Amarante

Mon, Aug 24 2015, 4:29 pm

Sanguine wrote:

I don't mean to kick someone who is down but as others have posted, you would have been better off doing nothing.

Without knowing anything about your particulars

1) You had to pay a commission to the broker to buy and sell the stocks

2) While you might have lost a bit of money on the stock you sold, if it had appreciated since your initial purchase, you now owe capital gains tax on the amount of appreciation - long term or short term depending on how long you held it.

3) It is very unlikely that any stockbroker in a completely volatile market would have any idea of what stocks are likely to go up.

shoshanim999

Mon, Aug 24 2015, 6:23 pm

amother wrote:

What's going on with the stock? I heard about China, will that effect the U.S.?

Based on the advice of Rabbi Lazer Brody, prob best to get out as soon as possible. Thankfully I don't have our money in stock but I'm even thinking of changing some from dollars to gold if possible for future security.

What did Rabbi Lazar Brody say and when did he say it?

amother

Slateblue

Mon, Aug 24 2015, 6:27 pm

Miri7 wrote:

I am not in finance but my friends who are say NOT to pull out your money. China is devaluing its currency which caused the drop. In the long term that should be a good thing - and prevent a bubble and crash.

On Shabbat I was talking with a good friend in finance and asked her if she'd had a crazy week. She said no, that she was not troubled by this at all. It could be bad if you were planning to liquidate this week to buy a house or something. But if you're invested for the long term not to worry.

Last week the markets were down around 5%. So unless you were invested in individual stocks, a $40,000 loss would mean you had approximately $800,000 in the market.

shoshanim999

Mon, Aug 24 2015, 6:35 pm

My husband has been a trader for many years and he always laughs at the so called "professionals". He likes to say that on an average day CNBC will interview 5 "experts". That means that over a 5 day week, 30 "experts" will give us their opinions. These are people that watch every tick of the market and have been doing so for many years. The point is that at the end of the week 15 will have said to buy and 15 will have said to sell. Now how can the typical amateur do anything with this information that is so conflicted? For the most part these so called experts aren't any better than the average house wife. CNBC had a one hour special last night (I believe tonight as well) about the markets tanking. WHERE WERE THEY LAST WEEK???? They are after the fact reporters! Now all the experts are coming on yapping about China....Did any of them predict last week that there would be a monumental collapse coming imminently? Of course not.

Another mom

Tue, Aug 25 2015, 2:01 am

I also heard that long term is the best thing.... My parents A"H used to check the paper daily (no comp then) to see how the stocks did that day. I told myself I won't do that... it just made the nervous , and upset if something dropped. So I rarely check -- Ok yesterday there was a reason ... good luck to all!

Sanguine

Tue, Aug 25 2015, 3:32 am

Amarante wrote:

1) I don't pay commission. I pay a quarterly %age so buying and selling itself doesn't cost.

2) - those stocks were losing anyway, didn't have them long

3) She basically had me sell the "hopefuls" that weren't gaining 2 weeks ago either and add that money to buy more of the very solid strong stocks since those are the ones most likely to weather this storm best.

m in Israel

Tue, Aug 25 2015, 5:35 am

Sanguine wrote:

In general when the market crashes like this it is a great time to BUY those "solid strong stocks". They go down together with the rest of the market, but since it is not connected to problems in the underlying company, overtime they will recover. So basically you are getting quality stocks "on sale" -- at a much cheaper price than you would otherwise. It could be your broker felt that the potential upside of your "riskier" stocks were no longer much more than the potential upside of those stable stocks which are now "on sale" and thought it was therefore worth moving your money there. It is not necessarily the "weathering the storm" factor as much as the fact that you are getting a good deal on a pricier/safer stock.

We actually have a broker who manages our stocks and are pretty heavily invested in smaller stocks that are more risky but carry a bigger reward potential. We do that because we trust the broker who we work with and he does a TON of research on the specific stocks we own. (We've been with him for over 10 years and have excellent returns on average, obviously with some stronger years and some weaker years.) However with this recent crash my husband is considering moving some of our money to Coca-Cola, which has really taken a hit but will almost definitely be coming back, and due to its lower price now has a dividend of over 3%! We still believe that the stocks we currently have will be fine -- but it might be worth it to take advantage of the cheaper prices currently available, even if to do that we need to take a loss on other positions in order to free up the money.

Sanguine

Tue, Aug 25 2015, 6:35 am

m in Israel wrote:

my husband is considering moving some of our money to Coca-Cola, which has really taken a hit but will almost definitely be coming back,

So funny - After the last big crash (or whatever it was - At least 10 years ago), I really wasn't into stocks but had a few little ones that my parents had given me. When I saw everything down (and everything I had didn't come back), Coca Cola is exactly what I thought of as a guaranteed stock - There will ALWAYS be Coke Very Happy

. (I didn't have the money for it but that was my thought then)

Sanguine

Tue, Aug 25 2015, 9:33 am

The money is just pouring in!!

PinkFridge

Tue, Aug 25 2015, 10:31 am

amother wrote:

Interesting. Do you have links? I think R' Brody's a formidable person but I urge anyone reading this thread NOT to do anything based on a post here.
That said, yesterday I heard a CBS "expert" (I assume she knows what she's talking about) recommending NOT to get out immediately but to wait and see.
Please take that with a grain of salt too.

Page 2 of 2

Previous 1 2