Just be glad you don't own AIG stock. It went from $70 a year ago to $3.75 today.
I just saw some financial genius on CBS who said getting credit, getting a mortgage, is going to change dramatically. Frankly I agree with him. Credit has been too easy to get. People got loans and mortgages that they simply could not afford. It worked both ways with lots of blame to go around. The mortgage lenders pushed big money loans and many consumers were irresponsible in thinking they could cover their notes.
Why couldn't that AIG stock be Microsoft or Apple, and the plummet was because of some scandal? I'd buy that in a heartbeat at $4!
The big thing is that people don't need to panic. This shake-up of the financial sector was overdue IMHO and in the end things will be more stable. Our portfolio has lost around 10% of it's value so far this year. But over the course of time it will recover and then some.
The irony is that my R.E.I.T. index fund, in spite of the battered NAV, is still spitting out wonderful dividends, which, reinvested, are going to put me in good shape when the recovery comes. The value funds aren't doing too bad either.
Man, I don't know if I can handle many more of these +/- 500 point swings on Wall St. I went out to do some mowing this afternoon and the Dow was in the red. I came back in an hour later and it was up over 400 points.
I just put a limit order in to sell the last financial stock I have. I can't take anymore bleeding from it. I am only keeping my foreign based shipping stocks because they are still above what I bought them for, and pay dividends.
I don't have much money to invest, so I can't keep watching it go down the drain.
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