Oct 8, 2008

Recession? Depression? Either way, it sucks.

I know, I know, I know that investing is a long-term investment. Turning 25 next month, I've got plenty of time to recover. Still, watching the money I put in stocks over the last two years completely tank is a pain in the ass. I've lost about $5000 thus far out of maybe $23000 total invested. I can only imagine how painful this all must be to people who have even more money in investment accounts, esp if they're closer to retirement.

Me... well, I'm trying really, REALLY hard to try to view this as an opportunity. The key word is actually trying. It's hard. While my sharebuilder stocks are being hit the worst, my Vanguard funds aren't doing much better. According to my Vanguard account...



So I've invested about $13,200 in my Roth IRA and non-IRA Vanguard accounts. The value of these accounts is $8966. Yikes!

Vanguard Losses: about $4000. -22% in this year alone.

I'm not pulling my investments out, however I realize that while this recessdepression isn't going away anytime soon, my money just may be going, going, gone.

Sharebuilder is even scarier. Really scary.

How scary, you ask?

Well, what better to do at 2:30am than to make a chart of my total investments throughout the last year versus their current worth. I've been bad about tracking my Sharebuilder investments because i'd put a few hundred dollars into it per month as an experiment, hoping that it would make me some money, but not enough to completely destroy my life if the "experiment" failed. I'm still not sure if this experiment is a failure, since I plan to go long on all of these. I'm tempted to buy more of some of them now, or soon, but I'm also tempted to stay out of the stock market outside of my Roth IRA for the foreseeable future.

Of my total 9 investments in my Sharebuilder account, only one of them is currently "up." That'd be my McDonalds stock. I paid $181.22 for what's currently worth $190.

But that's the only good news in an otherwise bleak account. Overall, the entire account is down 32%. Not surprisingly trending with the stock market, it's gone from a 17% loss to a 32% loss in just two weeks. It was last "positive" in May, when it was up 2%. Since then, it's just been sad to watch my stocks suffer.

Looking at the last two weeks, the hardest hit stocks & ETFs were PBD, EPI, and EWZ. I guess my other stocks had tanked deep already, while these were really hit by the lastest turmoil after surviving the earlier mess.

*EPI (india ETF)
of $372, I was down $62 two weeks ago. As of today, I'm down $130, or 35% of that investment.

*PBD (cleantech index)
of $356, I was down $70 two weeks ago and I'm down $167, or 47% of my initial investment today.

*EWZ (brazil ETF)
of $245, I was down $62 two weeks ago, and I'm now down $126, or 51% of my total investment.

SHAREBUILDER OVERALL
PERFORMANCE 2008

Total Investment: $2158
Current Value: $1465
-------------------------
Current Loss: -$694

--
March -2.2%
April -2.4%
May 1.2%
June -2.1%
July -5.8%
August -9%
Sept -21.6%
Oct -32%
--



4 comments:

Anonymous said...

Hi! If it was my finances I would pull all my money out. You are going to lose your money. When if you pull iit out at least you can use it or put it back in if ever goes up, but I really don't believe it will stay up ever again the way it used to. There are prophecies about this that I believe are being fulfilled now. Iceland has already froze all their regular bank accounts , so if they haver no money at home. Now they have no way to buy even food. I think the USA needs to heed these things even being seen in other countries. Blessings,lisa

Anonymous said...

Lisa, what you just described is selling low and re-buying in high. If you wait until the market begins to recover, you lose most of the appreciation and growth in your investments.
-Sarah

StarL said...

Hello!

I'm amazed at how you are working your money at the stock market at such a young age. I'm practically like your age, but I'm absolutely clueless about stocks and investments.

Unfortunately I will not be able to give you sound advice as to what to do with stocks--because as I've mentioned, I'm without pertinent knowledge on it. However, I think, you should just go on and not really dwell on the recession and depression... if ever probably do other investments wherein which you'd have more control over, that way... your eggs are not in the same basket, and you sort of feel a bit empowered that you can directly control certain aspects of your financial matters. :)

Cheers!

Morgo said...

I know how you feel. My 401k account is through Vanguard, and I just started experimenting with Sharebuilder this year. I'm in the 2045 Target Retirement fund at Vanguard; I'm glad I have a long way to cover my losses this year. All of my Sharebuilder holdings are down over 35%. But I like to look at this as an opportunity. It's like the stock market is on sale now, and we won't be able to get another deal like this in our lifetimes. I am positive that when I retire 40 years from now, the stock market will be worth more than it is today.

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