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Do you remember the television program, "Who wants to be a Millionaire"?The show was actually featured in a terrific book "The Wisdom of Crowds" by James Suriowiecki. If you remember, the contestants were given three "lifelines" to help them.
A question came up recently from a client... "we invested in the stock recently, and it went up nicely at first. But recently, the stock has started to fall. I'm not sure if we should close this position out... or should we just hang on. What do you advise?"
Mark-to-the-Market was a practice originally begun by futures and commodity traders in the 19th century. Essentially, mark-to-the-market means your holdings must be "priced" every the price they can be sold at.
Like crossing the equator on a ship - should buy and hold investors get some kind of recognition (or have some celebration) for crossing the line? The S&P 500 crossed 1100 in 1998 (twice), 2001 (3X!), 2002, 2004 and 2008.
Some Mutual Funds have a surprise waiting for you. The cost structure of mutual funds is completely out of whack with what investors want.
Don't worry about "why" your investment is falling. Focus on "what" instead. What is happening now.
Covered call writing is when you own a stock (or buy a stock today)and also sell (or write) a call option against that position.
It's a little embarrassing to hear media folks on TV and radio asking questions Friday morning like: "Do you think the stock market will open today?"
Is it true that high net worth investors focus only on generating the highest returns? No! The ultra-wealthy focus primarily on risk management. These people are not gamblers.
Let us look into stock history, when was bottom and what was situation at times.