Discussion in 'Business, Careers & Education' started by mikeman, Feb 2, 2011.
I feel like I just got punched in the stomach. Down 11 g's today so far... fml
holy fuck, that blows man.
sorry to hear.
Thank you! Unrealized of course so I'm not too worried... Buying opportunity!
If they thought that, they'd do the exact opposite.
I may be proving myself to be an idiot, but my understanding is that many forms of debt in emerging markets are issues in American dollars or Euros and that when the dollar strengthens (overall or by comparison) the effect is that it's more expensive to service that debt in local currency.
I dont claim to be an expert on the topic, but it's been a problem every so often, so I've tried to form a basic understanding of it.
Look on the bright side, there is plenty more blood to bleed.
You can say that again..
Oh the carnage! Every single thing I own is in the red today -- except for BSV.
The bull has lost its swagger!!!
I'm not panicking.
Even for my new positions, the drops aren't significant enough to me to warrant any averaging down, now that I think about it.
Keep calm gents!
I might actually buy more AAPL for a short term trade after earnings on Monday.
And lol at speculation of Yellen potentially cutting back on tapering.. or even increasing bond buying.
Days like this I like to remind myself of my goal and that cheaper stock prices get me there faster. That being said I still hate seeing the red.
What do you guys think about Wealthfront.com? Seems like a cool startup, thinking of switching my SEP over from boring ass Merryl Lynch.
I like vanguard, $2 trades at my current level and many funds with a low cost.
Not a huge fan of fees either so I am at Vanguard. Low cost investing where you buy and hold is usually boring. Since I have wide diversification it isn't very fun to talk about but the guys here holding ~20 stocks and seeing huge down days affect their portfolio more is entertaining. My bond holdings offset the equity down day yesterday in my 401(k)
I agree 100% with everything you wrote there.
I was just narrowly disagreeing with what you identified as the reason they took on foreign / hard currency debts.
It's exactly the opposite. People in developing countries take out loans in USD or EUR or whatever in boom times because their local currencies are appreciating and because USD or EUR or whatever rates are a lot lower than their local rates.
It's not that they don't trust their own currency, they trust it too much.
So everyone in Hungary who has a mortgage denominated in Swiss Francs (and they are legion) took that out back when the HUF was en fuego and the CHF wasn't because they had such low interest rates.
I'd also suggest that there's a whole lot less of that this time around. That was a horrible problem in 2008 (and in many episodes before that) but this time (2009 - now) you didn't have a massive buildup in foreign denominated debt in EM countries. It's more a case of US and EU and whatnot based investors piling into developing countries in search of non-ZIRPy yields and now (possibly) looking to GTFO.
At any rate, we reach the same conclusion about the likely performance of non G2 currencies.
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