Are you down 50% one or more of your stocks?That's the position a lot of people are finding themselves at the moment and some part of that is, of course, from the overall market drop but a lot of that is from paying too much when they bought the stock in the first place.
Now we move onto a very important topic that combines what we have learned and that is Adjusting our Goals. I talked about this on Tuesday (Part 2) in the Boeing example for someone who bought Boeing at $350 and now it's $150 (today it's $123!) and we do not sit there and HOPE (not a valid investing strategy) that BA will go back to $350 because it's no longer realistic!
Boeing instead offered voluntary buyouts to its entire staff of 161,000, in a bid to shed costs and adapt the massive manufacturer to a coronavirus crisis that could depress the aircraft market for years.
The Dow drops 700 points (1,200 off yesterday's high) and everyone is back to Doom and Gloom. We are in the MIDDLE of a Global Catastrophe that will play out over the next two to three months – it's the expectations of the participants that need adjusting – not the markets...