Well i did ask for trouble when i offered to try to answer any questions you might have. Little did i know that Aaron and Rita would be waiting in the wings. I suppose i have to lay the main blame on Aaron as Rita was only supporting his question.
He wants to know what he can do to make back the money that he has lost due to the stupidity of the so-called financial geniuses who got us all into this mess. Aaron i wish i had the answer to that. One thing that might help is if we could capture all these geniuses ...strip them off...and get them to dance while singing "We did it our way".
I suppose all i can say about the investment side of things is that for people who have shares that have a chance of making a recovery (like myself) it may be worth hanging in there and hope that they will recover somewhat. It will undoubtedly take time and a lot of patience but it may be worth it if you are in a position to hold on.
With regard to how we can recover ourselves from the effects of this disaster. Well i think that both of you are well equipped due to your personalities to do just that. The way you landed me with this question Aaron, speaks volumes for you great sense of humour, and the way Rita supported you shows that she too is blessed in the same way. Life kicks us all in the gut and sometimes in much worse ways than financially. The time i spent with both of you will always be worth remembering and what we enjoyed together had nothing to do with how much any of us were worth. Getting over the hard blows that life dishes out is always made a lot easier when we can see what is really important in our lives. The partner we have....the family we have....the grand-children we have...the friends we have...the good health that we have....or the great level of acceptance we have of whatever it is that is wrong in our lives. Some of the best people i have ever met astonished me with their calm acceptance of hardship pain and suffering. Both of you have known hard times before and do not need me to point that out.
We laughed together before and please God we will laugh together again and i know that we will do that even if we are broke. Maybe we can even help some others to laugh too.
Definitely hold on. At lower prices, your money is buying more shares (i.e. if you had $100 to invest and each share costs $50 you could buy two shares, at $10 you would have 10 shares). When prices go back up you'll be in a much better position. In any case, Madoff only reinforced the old adage 'don't put all your eggs in one basket.' (I watch Suze Orman, can you tell?) ~ Kristy
ReplyDeleteWell spoken Kristy. Hang in there. This is not the first downturn the market has known and it will not be the last but they have traditionally been followed by growth once again. It is really just a matter of time... but nobody can predict just how long that may take. Lets hope that it will not be too long.
ReplyDeleteDave
Here's a thought on the financial crisis and investing!
ReplyDeleteHaving gone though some hellish devaluations in the stock market I have learned some wisdom the tough way:
Most people are unwilling to acknowledge their own greed and stupidity. They project it onto others... Madoff and the like. Yes, Wall Street is greedy but so are the ordinary investors. They are hoping to get a few crumbs from the "master's table" but don't realize what they are caught up in.
People believe the unbelievable because they want the "lie" to be true. People don't properly diversify. I now of people in their sixties, close to seventies, who have had 2/3's or more in the stock market. People need to develop a conscience, an ethics, about investing. They need to start thinking how their investments are helping the world, not just themselves. Having gone through my own debacle, I turned to Sustainable Investing (formerly referred to as Socially Responsible Investing) through First Affirmative Financial Network. Until we look inside ourselves and realize we are the captains of our own financial ship and are responsible for what happens to us, there is no hope for curing greed and stupidity. Here are a few maxims that I like:
* I didn't see the blind spot (this captures my biggest lesson)
* The unexamined life is not worth living. (Socrates)
* You can't serve two masters... God and Money. (yes, Jesus)
* Be fearful when others are greedy and greedy when others are fearful. (Warren Buffett)
* It is not market timing but time in the market.
* You look but you don't see. (Sherlock Holmes)
* You shall know the truth and the truth (about yourself) will set you free. (same guy as above)
Well, money makes fools of us all.
Your friend,
Leon