Quote:
Originally Posted by Giantone
LOL....You take alot of things for granted.No one said they were heavey into one or another ...and yes you are ignorant of finance...if I were your parents I'd ask for my money back.You asked how could someone lose all their money by deversifying and I showed you it's possible.Now you try to change the discussion when proven wrong.You are the problem.....serously if you really have a finance degree and I came to you for advice then just like some of those athletes(not all)I would be in the crap house becuase you don't seem to know anything.You keep trying to mix the athletes that did what they were suppose to with the ones who didn't.
POINT>>>>>>>>>>If I have millions and I take my money to a finacial advisor(with a degree ...you know like yours) and he invests it and I did what he says,shouldn't he know to deversify? You always seem to go right by the Goldman Sachs stuff and the Berni Madoff stuff and make things up,again the fact that you are to ignorant of the facts to understand how these thing happen even more if you really have a degree is scary.
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Man, this is like debating a brick wall. Or a two year old. Neither of which has any purpose. But I'm a stubborn son of a bitch, so I'll perpetuate anyway.
1) I've addressed the Madoff type stuff all throughout this thread. I've said repeatedly, you should never give all your money to just one person, even if they have a degree and a great track record. That's unwise, and something everyone should know. A lot of really smart people got duped by Madoff, but if they had their money spread around with a few different advisors, they would have only lost the portion invested with Madoff. You don't just diversify your holdings, you need to diversify your advisors too.
2) You haven't proven anything with regards to how you can lose all of your money in the market, while at the same time being invested in an intelligent fashion. If someone had all of their money in Enron, then it went under, that's a crying shame and a crime on Enron's part no doubt. But it was stupid to have all your money in one stock. That's been my contention all along; if investors are properly diversified (across sectors, asset classes, international markets, and with various advisors) then there's no way you can lose all your money. It's just not possible. Case in point:
- During 2008 (the onset of the Great Recession), the US Stock Market lost ~50%.
- On black Monday in 1987, the Dow and S&P lost 20-25%.
- During those two periods (some of the worst stock market crashes in history), asset classes like bonds and commodities increased in price.
So if the investor was appropriately diversified, he would have lost less than half his money. Furthermore, if he didn't sell when it hit bottom, within 3-5 years he'd have all the lost money back. I'm just giving you the facts (but I guess that degree was worthless).
3) You don't know what you're talking about when it comes to the troubled companies you listed. While Toyota and Goldman have faced trouble, none have lost too much value when it comes to the stock price. You're going to have to explain to me how someone can lose all their money being invested in one of these companies:
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Toyota: Two years ago was trading right around $100 per share. At the low point following the recalls, it traded at $60 (a 40% loss). Now it trades at $80. Were they troubled? Yes. Did investors lose all their money? Hardly.
Toyota Motor Corporation Common Share Price Chart | TM - Yahoo! Finance
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Goldman Sachs: Before it was crushed by the mortgage backed securities it held, Goldman was trading around $150 per share. It dipped to a little more than $50 as those bad investments nearly froze the rest of its business. A big drop for sure, 66% to be exact. Following the US bank bailout, the company has since recovered and now trades at $150 again, even given the recent bad news. Were they troubled? Yes. Did investors lose all their money? Not at all, in fact, those that held on for the ride have just as much money as they did two years ago.
GS: Basic Chart for Goldman Sachs Group, Inc. (The) - Yahoo! Finance=
- AIG, Merril, and Fannie & Freddie all suffered precipitous falls they haven't yet recovered from. In those cases investors lost 90% and still haven't recovered. But if you're ever entirely invested in one company, you're a fool. Just like Enron, investors were crushed. But if you own a little of AIG, a little of Google, a little of Johnson & Johnson, a little gold, a little bonds, and a little international stock like you're supposed to, you wouldn't have been hit too hard.
But I must not know what I'm talking about. Take your knowledge and go back to New Jersey. This is a Redskins discussion board for the knowledgeable fan. You are neither.