why don't I get $4000 dollars back in my porfolio ? it always seems when the market loses big I lose more money than I get back when the market reaches the same point as before I lost $4000 when ithe market lost 400 points.
I know that these numbers are just paper loses as I am in the market for the long term,but looks to me like I would get the same amount back as i lost.
2007-02-28 03:43:41 · 7 answers · asked by TD1HOGY2K 1 in Business & Finance ➔ Investing
Because when you lose, say, 10%, you have to gain about 11% to get back to even.
$1000 - 10% = $900. $900 + 10% = $990.
2007-02-28 04:52:02 · answer #1 · answered by LongArm 3 · 0⤊ 0⤋
Because you pay much more attention when it's a big loss...believe me there are days when the market goes up 40 points and you make $120...but it may go up 40 points again and you make $ 185....and a 40 point loss might come along and you only lose $95.
Different areas move on different days...Europe is still down today, same with Asia ( except China)...tomorrow when they see the way the American markets have reacted...they will be up ( and a different part of your portfolio might make money)
So you may get your $ 4000. back before the market gains 400 points.....or it may have to gain 520......watch it real close and you'll know for sure....but then again there's always next time: and it will be a little different.
2007-02-28 05:15:35 · answer #2 · answered by jebediabartlett 6 · 0⤊ 0⤋
Well not unless you have the exact portfolio of the market
If you had IBM shares that drop as well as the market (same proportion) and the next day the market went up 400 basis points and with was only do to Oil stock, your shares would still remain as a loss.
The 400 points drop is based on overall averages. The increase while it may be the same 400 points the following day may not represent every stock change proportionately.
2007-02-28 03:52:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is apparent that you bought the wrong stocks. If you bought the right stocks, you would lose very little when the stock market does bad. Or not lose at all. And when its doing good, wouldnt it make sense that you would gain more money then you lose? Cuz you lose a little and gain alot. Isnt that how you are supposed to play the stock market to have a bigger portfolio? Well, I dont know what you are buying, but you could be off by a smidge, or off by alot.
2007-02-28 03:53:08 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Their confidence came with an American price tag. We have to give Greece 37% of 157 billion dollars for a 2nd time. This is why the market dropped. The market is saying where will the money come from?
2016-03-29 04:05:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Because unless you own index funds you are not going to match the market. Look at Intel (intc) it was down big yesterday but its only up 5 cents today. Plus the DOW is only up 77 pts as of now...so that is a big difference from 400+ plus drop yesterday.
2007-02-28 03:53:03 · answer #6 · answered by Anonymous · 1⤊ 0⤋
The major indices (DJIA, S&P 500, Wilshire 2000) reflect performance of the stocks that are chosen to comprise the index. Most likely, you're simply invested in different stocks than the index you're referencing.
Make sure you're comparing apples to apples. Unless you're invested in exactly the same stocks as the index you referencing (Dow Jones Industrial Average?) or in an index fund exactly matching the index, then you're going to experience different results. Also be sure to hedge your results by diversifying into investments other than domestic equities (stable value funds, bonds, REITs, foreign stock). Good luck.
2007-02-28 03:54:23 · answer #7 · answered by Marko 6 · 2⤊ 0⤋