Wednesday, August 10, 2011
Financial advisors are soulless
Found this Q&A from CNN/Money... A real person submitted a question about her retirement nest egg. The gist was over 25years she has lost a lot of her money by keeping it in the market and wants to know if its time to put it in cash so she doesn't lose anymore of it. The question was written prior to yesterday and was posted on CNN.com on Tuesday.
The so called expert tells her the following, "That would be a mistake. Now is not the time to give in to emotions and make rash moves. It's the time to take a few deep breaths and dispassionately set a sensible course for the future."
Since that 'expert' gave those words of advice, the Dow has dropped 520pts or 4.62%, erasing all the pretend gains from the last 70minutes of Tuesday's trading day, plus another 100pts.
The Dow currently is at 10,719. Last Wed, it closed at 11,898. In 5 trading days, the market has lost 10% of its total value. It may spike tomorrow.. who knows. But as of this moment.. a 10% loss.
And those experts- the people with the fancy clothes on TV and writing financial advice columns.. they do not suffer one bit when you lose Everything. All they do is tell you to Buy or Hold.
I have CNBC on in background as I write this. What is their advice after today? Buy in smaller quantities. If you normally buy 1000 shares, to instead buy 200 and see how it goes..
Total huckster vermin.
Listen, if you Must invest... if you Must put your money or retirement into the stock market, then at least do due diligence and pay attention for yourself. And when your instincts tell you to do something, don't write a financial version of "Dear Abby"... trust in yourself or don't invest.