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Individual Stocks and RISK

Started by pkamm, 03/05/2009 01:28AM
Posted 03/05/2009 01:28AM | Edited 03/05/2009 01:30AM Opening Post
After witnessing the last 18-24 months I don't think I'll ever look at an individual company stock again. 8O 8O 8O

In a world where big blue-chip names like Citibank, BankofAmerica, GE, GM and many more lose 90-99% of their value in a few years (or months), the notion of risk takes on a whole new meaning. Especially if you buy their stock when the company is doing well the news is good and the stock is $70, just before the story falls apart and the stock goes to $1.50.

Indexes for me. 8)
Posted 03/05/2009 02:24AM #1
Paul,

I've been thinking about getting into an index fund. What are the pros and cons of doing so during these precarious times?

Dave Mitsky

Chance favors the prepared mind.

De gustibus non est disputandum.
Posted 03/05/2009 04:48PM #2
I don't know. An indexed fund right now looks like having your ankle tied to a boat anchor.
Posted 03/07/2009 02:22PM #3
I would think that now individual stocks would be the only ones to pick. Who has the cash to survive a recession? Who is poised to benefit from a stimulus plan? Who is basically solid but got beat down to bargain prices? Who is going to get saved by the government? Of course, you'll need a lot of windex for the crystal ball . . . wink

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I have several telescopes, but none are semi-APO, APO, or in anyway valuable.
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