Posted on 11/05/2008 1:17:40 PM PST by kinsman redeemer
The DJIA is down 408 on the day after The One was supposed to make all things right with the world.
No one is saying it - but there is a connection. Maybe other factors are at work but what's the BIG NEWS of the day, huh?!
McCain's rise in the polls in the last week was accompanied by improvements on Wall Street.
Now this.
we’ve just been riding the whole thing out - I can’t say that I’ve felt like taking heavy duty drugs at times - we have quite a bit invested in through a stock purchase plan from work - a solid company - I would buy more now at the rock bottom price, but my financial guy said I’d have to kill him first...you know, diversify! We’ll make it, eventually, I’m just glad I have a few years to go before retirement.
Your advisor is correct. If you want to buy anything, do not continue to buy your company’s stock. You are already overlevered to that stock - you are a stakeholder, not only because you own stock, but also because it is your job! If you get laid off, there is also a high probability that your stock will be even lower. Best to be elsewhere for future investments - there are a lot of cheap stocks out there.
I know plenty of Lehman and Bear guys who were financially ruined by their companies going down. One guy lost $25MM in Lehman stock (partly because bonuses are paid in stock that has to vest - much of his stock did not vest). Be like Bill gates - he never buys ANY tech for his personal accoutn because he is already heavily exposed to tech through his MSFT stock!
You (and others) could be right with that response.
I believe the market would have reacted favorably to McCain's election because it would have meant greater confidence - not doubt about the future of the business environment (specifically wrt taxes - and 0bama's campaign promises.) Impossible to prove - maybe wrong-headed - just a feeling.
We will know more in a few days and weeks.
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