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07-26-2007, 09:08 AM
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#1
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Full time employment: Posting here.
Join Date: Mar 2006
Posts: 757
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$1 vs. $50,000
On Tuesday, my portfolio took a $50,000 hit. Also on Tuesday, Netflix lowered the price of my plan $1 a month---now $16.99.
Believe it or not, I'm more excited about the Netflix (saving $1 a month, for a whopping $12 a year) than I'm upset about the $50,000 loss in one day.
How insane is that? If anyone could explain me to me, I'd be grateful.
There's gotta be some explanation.....
__________________
“It is not a sign of good health to be well adjusted to a sick society”.------Krishnamurti
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07-26-2007, 09:11 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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The Netflix savings are real. The portfolio fluctuation isn't real until you sell the portfolio. Also if you have had the portfolio for longer than 6 months or so you are still way ahead.
Also percentage wise maybe your portfolio dropped 1-2 %, however your Netfix savings are on the order of 5-6%
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07-26-2007, 09:27 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 3,346
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Not sure of the numbers Vs %s but my portfolio went down $5K on Tuesday. Now if that means that your portfolio is 10X mine, that would be a good reason for me not to worry, maybe yours is large enough for you not to worry?
__________________
T.S. Eliot:
Old men ought to be explorers
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07-26-2007, 10:27 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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because you are frugal?
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07-26-2007, 10:45 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
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Considering what's going now, Tuesday did not look too bad.
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07-26-2007, 10:52 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Aug 2005
Location: Crownsville
Posts: 3,746
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Oh, did something happen on Tuesday? I didn't even notice. :-)
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07-26-2007, 10:59 AM
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#7
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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 Quote:
Originally Posted by tangomonster
On Tuesday, my portfolio took a $50,000 hit. Also on Tuesday, Netflix lowered the price of my plan $1 a month---now $16.99.
Believe it or not, I'm more excited about the Netflix (saving $1 a month, for a whopping $12 a year) than I'm upset about the $50,000 loss in one day.
How insane is that? If anyone could explain me to me, I'd be grateful.
There's gotta be some explanation.....
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The $1/month is a "real" gain while the $50K loss is Monopoly money unrealized cap losses.
I've read that investors will avoid $1 in losses for every $2 in gains. The pain of losing hurts twice as much as the pleasure of winning. In other words losing the first dollar is no problem, but at the second dollar we're talking real money.
Although if your portfolio's in Netflix then you should be worried... based on the market at 1PM EDT Thursday, it looks like they're going to have to reduce their plan prices another $2-$3/month.
Hey, CFB, is that blue light flashing yet?
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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07-26-2007, 11:20 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,154
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Let us know how you feel after today! LOL!
Audrey
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07-26-2007, 11:25 AM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,154
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A week ago, I sold some assets to take some profits in my "play money" account, and transferred them to my conservative steady-eddie retirement portfolio.
It boosted my retirement portfolio by 1% - sweet!
But within just a few days, that 1% has vanished into thin air! Of course, the retirement portfolio is being clobbered big time right now.
That's kind of a let down.
Oh well!
It'll be back ....... one of these days.
Audrey
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07-26-2007, 11:36 AM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Oct 2003
Posts: 5,105
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Let's not forget it is the summertime.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
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07-26-2007, 11:39 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by Andre1969
Oh, did something happen on Tuesday? I didn't even notice. :-)
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Yes, it did and it's being repeated now.
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07-26-2007, 11:43 AM
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#12
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,501
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Quote:
Originally Posted by Spanky
Yes, it did and it's being repeated now.
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OOF!!! I hadn't looked until I read this. (sigh) Here we go again!
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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07-26-2007, 11:51 AM
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#13
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Thinks s/he gets paid by the post
Join Date: Aug 2005
Location: Crownsville
Posts: 3,746
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Oh cool...another buying opportunity!
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07-26-2007, 12:11 PM
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#14
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Recycles dryer sheets
Join Date: May 2007
Posts: 107
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Quote:
Originally Posted by Nords
The $1/month is a "real" gain while the $50K loss is Monopoly money unrealized cap losses.
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Nords, thanks for a good laugh !
I have been in a similar situation. I have had "unrealized capital losses" (boy does that sound cool !) in that range and was happy to get a good deal on a $20 item on eBay !!
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07-26-2007, 01:44 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
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Quote:
Originally Posted by Nords
The $1/month is a "real" gain while the $50K loss is Monopoly money unrealized cap losses.
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I don't think I can get exited because of $1/month (or even $10) gain. But a 5% loss in 3 days, realized or not, certainly hurts. I'm definitely not in this camp.
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07-26-2007, 02:31 PM
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#16
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by Sam
But a 5% loss in 3 days, realized or not, certainly hurts. I'm definitely not in this camp.
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It's a great buying opportunity for some of the ETFs I've been tracking, and we're taking advantage of it.
As CFB says, the stock market is the only business where they throw blue-light sales specials and the customers run screaming for the exits...
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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07-26-2007, 03:05 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 2,155
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Quote:
Originally Posted by Nords
As CFB says, the stock market is the only business where they throw blue-light sales specials and the customers run screaming for the exits...
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This is so true. Unfortunately, I'm out of ammunitions at this time. But at least I'm not running for the exits, yet.
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07-26-2007, 03:26 PM
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#18
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,501
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Quote:
Originally Posted by Sam
This is so true. Unfortunately, I'm out of ammunitions at this time. But at least I'm not running for the exits, yet.
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I guess I am too. I have everything all planned out, and I think I'll just stick to my plan.
I know one thing for sure - - I am really lousy at market timing. If I tried to buy today, the Dow would plunge another bazillion points right after I bought and it would stay there.
We don't want that, now do we?  So I think I'll just ignore this blue-light special.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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07-26-2007, 03:54 PM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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Hmm...I have a rather large six figure amount of cash I'd like to do something with some day, so please BUY! I'd loooove a bazillion point drop. After all, unless you're selling...low prices are our friends!
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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07-26-2007, 05:01 PM
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#20
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Recycles dryer sheets
Join Date: Jan 2006
Posts: 331
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Quote:
Originally Posted by Nords
As CFB says, the stock market is the only business where they throw blue-light sales specials and the customers run screaming for the exits...
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That's certainly true, and I have done well at keeping that in mind. When days like we've had this week happen, I just don't bother to check my balance. I know it's down a bit, and seeing it won't do anything but worry me.
However, psychology aside, there's a difference between a blue-light special in the stock market and one at K-Mart. Your 5 oz shampoo bottle isn't going to be embroiled in a scandal involving a cover up by the shaving cream, thereby eroding confidence in its ability to cleanse your hair and ultimately leading to a loss of 4 of those ounces and the firing of half the ingredients!
While the bottom isn't going to just fall out of the stock market, the "sale price" can keep going down and down on individual stocks until it hits rock bottom. Lucent stock, anyone?
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