Investment income on the decline again

I can't help you since I don't know your investment. What I can tell you is that to rent a car in Anchorage, Alaska, they seem to want $300/day. Seems that our money is getting to be "funny money." They can keep their cars in Anchorage; if I go there I'll drive my own car and enjoy the drive along the way.
 
debodun said:
I've lost over $10K the last 2 months on my investment account. Can anyone explain this?
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Don't worry, you are not alone, I'd guess we have all lost a lot lately. My retirement-target-year funds have lost the most, I just hope the fund managers know what they are doing, because I'd thought those funds were the most safely conservative.
My Fidelity home page used to tell me how much money I can spend per month in retirement, then when the market went down it started telling me what year I would run out of money in retirement, then the market went down more and the year for 'end of plan' came even closer, and now the market is down so much the homepage is eerily silent about the whole thing! ha ha

I'm still studying Spanish on the DuoLingo site each day just in case I have to move to Mexico and live off just Social Security.
 

There are a lot of factors that influence the stock market. My investments are down a lot, over all too. The war in Ukraine is forcing a big hit, economically, but if you can hang on for a year, I suspect it will eventually come back. Remember 2008? We all survived and did even better. I'm ever hopeful.
 
Packerjohn said:
I can't help you since I don't know your investment. What I can tell you is that to rent a car in Anchorage, Alaska, they seem to want $300/day. Seems that our money is getting to be "funny money." They can keep their cars in Anchorage; if I go there I'll drive my own car and enjoy the drive along the way.
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yes I was shocked the other day when I looked up car rentals. I was thinking I might drive to Scotland... and I don't want to put all that mileage on my own car.. It's only 450 miles or therabouts, but it's on a manual thats a few years old, so I thought I'd hire a new-ish car.. fuggettaboutitt...
 
debodun said:
I've lost over $10K the last 2 months on my investment account. Can anyone explain this?
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Soaring inflation, uncontrolled government spending, high energy prices, supply chain shortages, real earnings falling, international chaos, pandemic, unsecured boarders, good chance the U.S. economy is headed for a recession are some of the reasons.

If the current trends continue, most investments will continue to fall. IF and when at least some of the trends reverse, many investment should rise. Your guess is as good as anyone's as to which way things go in the foreseeable future.

Standard wisdom is investing in the stock market has always provided positive returns over the LONG term. The question may be, how long of a term do some of us have. (And of course, past performance is not indicative of future results.)
 
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p.s. I also started studying Spanish on .DuoLingo. I'm not sure I am going to have to move to Mexico in order to find plenty of opportunities to use it.
 
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Kind of hard to explain if we have no idea what your investments consist of. The market took quite a dive on Friday. According to Yahoo Finance my investments lost a little more than $6,000 that day. I suspect it would have been more if utility funds which make up 27% of my portfolio dipped as low as other investments, but they tend to hold up better in down markets. As long as you're in it for the long haul, your investments will bounce back at some point. Nothing should be invested in the market that you'd need within 5 years.
 
"So smile when you read a headline that says "Investors lose as market falls." Edit it in your mind to "Disinvestors lose as market falls-but investors gain." Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other. (As they say in golf matches: "Every putt makes someone happy.")" - Warren Buffet
 
Hey, right now your money in the bank is the best investment...lol.
Right now we are rating our funds by the one that has lost the least - and that
is a great Dividend Growth Fund...it seems to be golden so far this year.
 
There are dozens upon dozens of financial analyst out there explaining why the market reacts as it does. There are certainly indicators that from a historical perspective can indicate possible fluctuations.

You know what I think? So much of market fluctuation is based fear reaction. It seems all it takes is a news source to report on a little hiccup that may resort in a financial dip and then it becomes a run away train, by the next day we're in a crisis.

I think we should ban all news sources from speculating on economic issues. I'm only half joking.
 
Aunt Bea said:
The annoying thing about mutual fund declines is the capital gains that are generated as fund managers attempt to salvage past gains.

That usually results in higher income taxes in the down years than in the up years.
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Time for some tax loss harvesting?
 
C50 said:
There are dozens upon dozens of financial analyst out there explaining why the market reacts as it does. There are certainly indicators that from a historical perspective can indicate possible fluctuations.

You know what I think? So much of market fluctuation is based fear reaction. It seems all it takes is a news source to report on a little hiccup that may resort in a financial dip and then it becomes a run away train, by the next day we're in a crisis.

I think we should ban all news sources from speculating on economic issues. I'm only half joking.
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Beloved John Bogle said "nobody knows nothing"...and that is the only double negative non declarative sentence that is actually "declarative"...lol.
 
Aunt Bea said:
"So smile when you read a headline that says "Investors lose as market falls." Edit it in your mind to "Disinvestors lose as market falls-but investors gain." Though writers often forget this truism, there is a buyer for every seller and what hurts one necessarily helps the other. (As they say in golf matches: "Every putt makes someone happy.")" - Warren Buffet
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Warren also said “The stock market is a device for transferring money from the impatient to the patient”.

Right now, the traders are making money on the shorts.
 
The stock market reacts to all economic indicators noted above. Also, the cost (interest rate) the Federal Reserve is charging for money it lends to banks, impacts the markets. The Fed's use this rate to try and damper inflation.

Those who have investments in the stock markets frequently get upset when the market values drop.

But know that over the long history of the US stock markets, the overall values of stocks have always come back and then actually grown in value. Most of the time these variances seldom last more than a year or so (except during the great depression).

Therefore, when the markets are dropping, if you are not actually selling your stocks at a loss during these times, then you are actually not losing any value in your stocks, since they will recover if you just wait it out. If your stocks are for later in life (like a 401K or other retirement investment portfolio), just sit tight and don't spend time worrying about it. My investment advisors are doing some tax loss harvesting during these downturn times. This tactic works well if you know what you are doing. That's one reason I have a professional working with us on investments.

I am not a stockbroker or investment advisor, just a retired guy who had a 401k over many years. I learned to not worry so much about it, as when the market dropped, I just sit tight.
 
debodun said:
I've lost over $10K the last 2 months on my investment account. Can anyone explain this?
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The markets are in a sharp decline due to many factors....Inflation, Ukraine, the Fed, Covid supply chain issues, etc., etc. This trend will likely continue for much of the Summer....and may even rival the downturn in 2008. The "fear" factor is driving much of the market trading, and the Tech stocks are taking the biggest hits. The CBOE VIX index is hovering well above 30, and until it drops well below 20, this market volatility will likely continue.

This is a good time to be invested "conservatively" and waiting things out.
 
My investment isn't in the Stock Market. I have Franklin Fund tax free securities. I am not panicking, just curious. The worst thing peple do in an economic downturn is start pulling money out of their investments. That's what caused the Stock Market crash in 1929. Sell! Sell! Sell!
 
HarryHawk said:
Soaring inflation, uncontrolled government spending, high energy prices, supply chain shortages, real earnings falling, international chaos, pandemic, unsecured boarders, good chance the U.S. economy is headed for a recession are some of the reasons.

If the current trends continue, most investments will continue to fall. IF and when at least some of the trends reverse, many investment should rise. Your guess is as good as anyone's as to which way things go in the foreseeable future.

Standard wisdom is investing in the stock market has always provided positive returns over the LONG term. The question may be, how long of a term do some of us have. (And of course, past performance is not indicative of future results.)
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If we are lucky, things may slow this down turn after Nov. but a complete turn around won't happen for about 3 years. best thing is become a little frugal and try to live on your fixed income and reduce selling your investments to allow them to recoup. Retirees are going to have it hard for awhile with high inflation and no / slow market growth.
 
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