Does anyone else like pain?
filed in My Investments on Nov.20, 2008
It seems that the only pleasure of being in the stock market these days is the promise of hard pain each and every day without any serious hope of help in sight. At fist when all this turmoil began in September (some might say earlier), I used to think I was having a heart attack watching $20,000 investments in some companies chop into half in a matter of a day or two…those were pain. But for some reason, I stuck it out.
That pain earlier was rough. I could not sleep, could not focus on my classes, nor did I want to go out with friends. I just wanted to sit around in my room and recover from the intense heart pain and weird aches in my bones that followed. Over time, this pain took less of a toll on my body…It seemed like I was hanging onto hope that a rescue, a direction from a higher power would come and guide me and the many other investors towards safety but its apparent that we are all being forced to fend for ourselves while CEO’s fly in their private jets and go on spa retreats and congress bickers and argues about bailout distributions.
Some that read this feel that a bailout of an industry like the auto sector for instance is not a good idea especially when its being financed on the backs of tax payers. Well look at the flip side…without a bailout, which taxpayers are paying for unemployment? which taxpayers are going to see their communities/neighborhoods lose value? which taxpayers are going to see a greater burden on medicaid because the newly unemployed cannot afford private care? YOU.
Its hard to swallow this mess that has been created, but at this point the government and its people need to come together and find a solution that is viable to keep the wheels of all industries moving while at the same time enacting new rules when it comes to short selling, CEO pay scales and also an overhaul on the market system on a global scale.
I know a few days back I picked up GM and today saw my value in that stock at one point go down 40% but as I started writing this, from that low, people could have doubled their money within a matter of hours today. That a major swing! Volatility is all around us and hopefully something can happen soon so that confidence can be had in not only the markets but also the products that are produced.
Happy Investing.
Aman, MBA
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