The standard advice would be to keep it in stocks if you wont need that money for next 2-3 years or get out but wait till the next short term rebound...
If you don't need the money and you had no intention of cashing out prior, why would you cash out now unless it was absolutely a sinking ship? I would just ride the storm...
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Whats your timeline? Do you have a pressing need for cash?
If your timeline is greater than 3 years and have no pressing need for cash, I suggest you don't even look at the stock price for the next 3+ years. Pull a rip van winkle.. when you check back in 20 years, you'll be just fine.
thanks for the advice.. i was actually about to use $6000 of it to expand my business.. But now that looks impossible, since its best to wait like most you guys have suggested.
Thanks a lot.. I really appreciate the help.
Market Minute: October 6, 2008: Major low is near - Donald W. Dony, FCSI, MFTA
As the 2008-2010 bear market continues to unfold, models are indicating the next major market low has almost arrived. Technical evidence suggests that the next important trough for global markets is expected by mid-October. Though bear markets are constructed of a series of lower lows, they are also punctuated with strong short-term advance. Past bear markets have displayed upward movements of 15%-20%.
Bottom line; Expect a low to develop within 1-2 weeks followed by increased upward pressure into November. Longer-term models still support lower numbers over the next 12-18 months.
Investment approach: During bear markets and business cycle contractions, central banks normally lower interest rates to help stimulate economic recovery. Lower rates means higher bond prices. The next 12-18 months should offer an excellent opportunity to profit from higher bond prices.
answer is simple, if you don't sell, you have lost nothing. Market will come back.
HORRIBLE advice, I lost $30k a couple years back but would have lost only $10k if it weren't for STUPID advice like that.
Fact is if you're bitching about losing $7k just pull out and STAY OUT! The market currently is russian roulette these days. I don't see any reason to put money in ANY stock at the moment to "invest" the only way to make anything right now is swing trading. "investors" have no place right now.
damn.. now im really confused...
Actually, im not bitching about it cos it was supposed to be longterm investment.
What happened was that, i wanted to withdraw some of it to fund another business.
But i cant do that anymore since the loss.. Now, i would have to use money from other sources.
But now, im not sure if i should just withdraw the remaining and use it for my biz or use leave it alone and grab cash from another source.
thanks for the advice.. i was actually about to use $6000 of it to expand my business.. But now that looks impossible, since its best to wait like most you guys have suggested.
Thanks a lot.. I really appreciate the help.
It really does depend on what the stock is in imo.
If it's in the financial sector or in companies with very high debt to earnings irrespective of their growth or rentability, then the company is going to take a lot lot longer to bounce back and I'd say sell and buy into something that will rebound a bit quicker.
All sectors are hitting or shortly hitting 4yr lows, just some will bounce back quicker than others. Have a look at Christian Dior when it hits around 30 euro (25% less than todays values, whatever that be on your country's exchange) or similar in the domestic products sector, or even telecommunications sector as these will bounce back, irrespective of world recession. I'd cut out and put in these, cos you'll get your money back in less time.
Depending of course which sector you are currently in.
HORRIBLE advice, I lost $30k a couple years back but would have lost only $10k if it weren't for STUPID advice like that.
Fact is if you're bitching about losing $7k just pull out and STAY OUT! The market currently is russian roulette these days. I don't see any reason to put money in ANY stock at the moment to "invest" the only way to make anything right now is swing trading. "investors" have no place right now.
Warren Buffett says to hold for 10+ years. He would tell you not to worry about drops in the market. If anything, a drop in the market might be a good time to buy.
“If you can convince the lowest white man he’s better than the best colored man, he won’t notice you’re picking his pocket. Hell, give him somebody to look down on, and he’ll empty his pockets for you.”
This question is for anyone familiar with the stock market.
Should i hold or just cash out... im left with $14,192 on that particular investment.
You're talking about a "particular investment". Without knowing what it is, nobody can give you any decent advice.
Several scenarios:
- you invested in an index fund, or a broad basket. If this is the case, in a few years (5-10) your investments are likely to have gone up again. There is a risk to this, but historically speaking, it's a small one.
- you invested in an index fund, or a broad basket, and don't want to wait 5+ years before seeing your money again. Take it out now to minimize risk, or keep it in for a bit longer if you think a big upward surge is likely. Each is risky.
- you invested in specific stocks, and you're Warren Buffet. You probably based your investments on extensive research, so in the long run, values should go up again.
- you invested in specific stocks, and had very little idea about what you were doing. You're fucked. Taking it out now means you get to swallow large losses, keeping it in means you run a very real risk of losing it all. Seriously, what the fuck were you thinking?
The only good advice is: If you think the stocks will go down further, why would you want to lose more money? Unless you're willing to ride it out.
Even if you think the company will survive, but have another hard year, you can take out your money, and re-invest in the same company when it's bottomed out and starting to go back up again, effectively increasing your stake.
the smartest thing you could have done is come to gfy for stock advise
I second this.
To earn money on stock exchange, do exactly the opposite of what all others do. But don't tell it to everyone else.
Maybe this would be smart in our porn business too, i don't know because i'm only a stock expert.
My IRA is down 20% and Im still contributing to it and dollar-cost-averaging my positions and picking up some undervalued and battered stocks.
My friend also sent me this interesting excerpt he heard on CNBC:
75% (give or take) of investors buy stocks heavily when the market is sound and the stocks are almost full prices. They have a false sense of security thinking the market is solid and it can only go up. So 75% of the traders will wait and buy at the high cause they think it's safe....which is why losses are so huge in times like this.
Whereas, those same 75% won't buy stocks when they actually should...when the market crashes or stocks are so devalued...cause everyone is so scared to invest.
Actually, ive giving up on this investment .. fuck it.
I checked closing today and its really down.. from my calculations im left with probly $9k OR 10k.. ha
Its not my life savings, so im not depressed.. But just wish i didnt have to lose out.
I honestly havent lost anything.. cos i started with about 9,5K something last year.
And its not finance
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