Economic Elephant

[Mr. Jelly]

My wife used to talk to her two sisters by text and by phone often during the week. Sometimes several times a day now that we are all retired. I noticed it's been real quit lately so I asked my wife why. Then she mentioned her one sister who's married to my brother said he's depressed because he's lost so much money. She's not supposed to say anything. Her other sister mentioned a little while ago that they were losing money. And nobody's talking anymore. So there's an elephant amongst us. I emphasize and understand but it's still to bad. In these times when we can all use each other's support, this.

[AmericanEagle]

Financial hardship is certainly a source of depression. I hope they will be ok.

[Bridgepin]

Very sorry to read what is going on in your family. Sadly I don't think we are even close to having a turnaround. These are going to be very tough times ahead.

[Bug Guy]

Originally Posted by Bridgepin

Very sorry to read what is going on in your family. Sadly I don't think we are even close to having a turnaround. These are going to be very tough times ahead.

Here in the U.S., the thinking is that we're in for at least 18 months of negative economic growth and slow recovery as the pandemic runs its course.

[Murphy Slaw]

The economy is taking the biggest hit since the Great Depression. I'm thinking giving gifts is the wrong approach.

Just me.

[ahorsewithnonam]

Did he foolishly sell stock holdings? You haven’t lost invested money unless you sell it. Look how much the market is up today and we aren’t at the end of the tunnel yet.

I remember in 87 and 2008 people panic selling and locking in “paper reductions “ into real losses. Yet if they would have not panicked, they would have seen everything return to normal.

[kentwinterton]

Sorry to hear of your situation. Family is so important and we must support each other - especially through the hard times. My wife is a nurse in a cardiology clinic and had her hours cut in half as they are not seeing non-emergency cases right now. It is a strain on our budget for sure but I'm keeping a stiff upper lip. Best to you and hope everything works out for ya'll. Kent

[Pura Vida]

Originally Posted by ahorsewithnonam

Did he foolishly sell stock holdings? You haven’t lost invested money unless you sell it. Look how much the market is up today and we aren’t at the end of the tunnel yet.

I remember in 87 and 2008 people panic selling and locking in “paper reductions “ into real losses. Yet if they would have not panicked, they would have seen everything return to normal.

For the market, this is important info in these uncertain times. People panicked and sold when the market began falling in 2008, which turned into actual losses. Not everyone is in a position to weather the storm, but for those who can, we need to refrain from panicking and ride it out. And for some who have disposable income, it could even represent a buying opportunity. Stocks increased 20% this week, driven by the COVID bailout.

[Maryc-k]

Originally Posted by ahorsewithnonam

Did he foolishly sell stock holdings? You haven’t lost invested money unless you sell it. Look how much the market is up today and we aren’t at the end of the tunnel yet.

I remember in 87 and 2008 people panic selling and locking in “paper reductions “ into real losses. Yet if they would have not panicked, they would have seen everything return to normal.

That’s the key. And limit what news outlets and which “experts” you listen to. There’s a lot of misinformation and half-information going around.

[rokdog49]

Originally Posted by ahorsewithnonam

Did he foolishly sell stock holdings? You haven’t lost invested money unless you sell it. Look how much the market is up today and we aren’t at the end of the tunnel yet.

I remember in 87 and 2008 people panic selling and locking in “paper reductions “ into real losses. Yet if they would have not panicked, they would have seen everything return to normal.

Some folks were caught “in retirement” and had to take their holdings for income at the time. They had no choice.
In fact it was quite a few of them. I had a friend who was in that boat and he and his wife ran out of their retirement nest-egg money because of their losses.

[Silly Moustache]

I was thinking about puuting my pension investments into cash, but hesitated. I have stopped taking an income from it for 6-12 months. We'll see.

If I had put it into cash, the inevitable inflation would make it relatively valueless any way.

Tie yourself to the mast and hold on tight.

Whet is done is done, just plan for the future.

[David Eastwood]

Originally Posted by rokdog49

Some folks were caught “in retirement” and had to take their holdings for income at the time. They had no choice.

I have a neighbour who was in exactly that situation - retired teacher who took a huge hit in 2008-2009, with two kids in college earning worthless degrees.

He took a job at Target and his wife carried on working - and now, 10+ years later, they appear to be doing fine.

He still works at Target, because he actually enjoys it, but they still have an under-employed dance major living with them...

Funny how stuff works out in the long run.

[MrDB]

As Horse said, you don't lose anything or gain anything until you sell your position. The market will come back, you can count on it. No one knows how long it will be but it will happen.

Secondly no one that owns a stock should own that stock without a trailing stop order. No exceptions.

[Borderdon]

Originally Posted by Bug Guy

Here in the U.S., the thinking is that we're in for at least 18 months of negative economic growth and slow recovery as the pandemic runs its course.

Negative economic “Growth” ??

[RustyAxe]

Us retired folks are taking a hit on our nest eggs ... again! We haven't used any of it to live on ... yet ... so it's status quo as far as income/expenses. It isn't a "loss" until you cash in your chips, and we won't.

I've had moments where I thought I was entering Bunyan's "Slough of Despond" but I hitch up my big boy pants, and find something to do. I just raked out the gardens (it's 60'F and climbing here today) and feel fine. Had a chat with my next door neighbor across the fence. Yesterday I visited a friend, maintaining more than adequate separation.

I'm concerned about the economy like everyone else, but not to the point of depression (no pun intended). It isn't easy but we need to shake off the worry and fears (well justified, to be sure) and find ways to cope with ever-increasing uncertainties. That's just how it is ... now.