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  Main Page › Relationship & Lifestyle › Marriage Dissolution
   
 

Divorce and the Stock Market

   

Author: Al Thomas

The most recent statistics show that about 50% of all marriages end in divorce. It is not very encouraging to enter into any kind of relationship knowing that it only has a 50/50 chance of being successful. Failure at anything is never pleasant, but there is one good thing about divorce. You are now free to try again and hopefully this time you will not make the same mistake.

Now I want you to think about divorce and the stock market. Do you own any stock or mutual funds that are selling for less than you paid for them? If you have owned any equities during this past three years I will be willing to bet you have some losers in your portfolio. Dont you think it is time to think about a divorce, a divorce from a losing situation?

Suppose you sold everything today and put it all in a money market account paying 1%? I know what you think about 1%. Suppose you had dumped those losers 2 years ago and been in cash all this time? Would you be money ahead at 1%? Ill bet you would.

You may be saying you dont know whether this is a good time to sell or buy more. Here in one way to make that decision. Analyze the stock or fund you have. If you would not buy more of it now then the smart thing to do would be to sell. And dont fall for the big Wall Street lie about dollar cost averaging.

Here is another way to determine how and when to sell let the market tell you. You can place a stop-loss order with your broker for any amount you wish. Say your stock is selling for $20/share. I like to limit my loss to about 10% so I have my broker enter an order to sell me out if the stock drops to $18. If it keeps advancing I raise the stop loss order every week so that it is trailing along behind about 10%. When it advances to $30 my stop would then be at $27. This way I dont have to guess about where to get out. Brokers dont like to do this because they have to watch your account, but dont let him talk you out of it. You dont want to lose everything like you might in a divorce. Limit the damage. If you own mutual funds you will have to watch these yourself as you cannot place a stop-loss order; you have to call the broker to tell him to sell.

When you are in a bad marriage things just seem to get worse and worse. You could lose everything. When you are in a long-term bear market as we are now it is the same. Your financial assets become less and less. At least in the stock market you can limit your losses. Dont call a lawyer, call the broker and get out.

Author Bio:

Al Thomas

Albert W. Thomas has spent most of his life in the field of finance. In 1965 he founded an insurance holding company, Security Dynamics Investment Corporation, after having been an agent and General Agent for several life insurance companies. In 1970 he became cofounder and president of Real Life Estate, Inc., that marketed a unique real estate and life insurance package.

After he became interested in commodities he bought a seat for his personal trading on the Chicago Open Board of Trade, which is now known as the MidAmerica Commodity Exchange. Later he became a full time trader and also acted as a commodity broker for a few select clients. By fellow floor traders Al is considered to be an excellent technical analyst much of which is outlined in his book IF IT DOESN'T GO UP, DON'T BUY IT! It became a best seller on Amazon.

In 1981 he sold his membership on the Exchange and with his wife, Carolyn, lived full time aboard their 41' ketch, the Aumakua (which means guardian angel in Hawaiian). They sailed in Florida and the Bahamas for two years.

He founded World Trading Group in 1984 that grew to the seventh largest introducing commodity brokerage firm in the U.S. with 35 offices from coast to coast, Alaska and Canada. It was sold in 1992.

Al is a graduate of Northwestern University with a B.S. degree in Commerce and is a member of MENSA. He is now president of Williamsburg Investment Company that syndicates his weekly financial column since 1999 to more than 300 newspapers and writes a financial market letter called Over My Shoulder that is quoted in Barron?s and many other publications. A 3-month trial subscription is available on his web site. He is a regular guest on several financial radio talk shows.

His favorite pastime is fishing.

Mr. Thomas is available for speaking engagements. Please call 321-453-5300 for more information.

You can also reach this article by using: divorce advice, divorce papers, divorce records, divorce lawyer, divorce forms, separation & divorce
 
 
 

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