Wachovia Securities
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Hi, I just joined this forum,
I have been investing with A.G. Edwards for the past 5 years and all has been well. Except the past 2 months.....since A.G. Edwards has become Wachovia Securities. I have lost more money in the past 2 months than I earned in all of 2007. I am young and do not know much about stocks/bonds etc. I have been trusting my broker and he has been doing well. He tells me this is just a rough summer but all the things I have been reading about banks and wachovia uneases me.
I guess the reason I joined this forum is to ask for advice and learn from others point of views and knowledge. I have all my money in Wachovia Securities and I'm not sure what to do. My Uncle told me to pull out all my money and buy land. He hates Wachovia, but his hate goes back 20 years. My cousin has more money than me and he is very anti-banking, I guess would be the term. He put all of his money in land and gold. He tells me to take all my money out because all the banks in US will fail.
Any advice or links to threads that I should read will be appreciated
You do realize that the last five years have been a bull market and this year has been bad, right? Your issue has more to do with the market than the firm you are with. The reason you have lost more money in the last two months than you made last year is because the market has dropped more than double what it was up in 2007. As far as every US bank failings, this is not even close to the worst time in US banking history. Five banks have gone under this year. Over 700 went under in 1987.
As far as buying land, do you really want your money invested in a market that is falling faster than the stock market and has limited liquidity? That make no sense. The only reason people do not panic about real estate is that the real estate you own does not have a minute by minute value attached to it. If it did, you would realize that the real estate market is more volatile than the stock market and historically has a smaller return. But people buy land and 15 years later it is worth double and they think they are geniuses, when in fact with a good FA you could have done far better in the market. The primary difference is the landbuyer only knows the value on the day he bought it and the day he sold it, whereas the stock investor knows the value every minute if he chooses to look at it. You said it yourself, you trust your broker and he has been doing well. You posted the answer to your question.IcePik, Come back to this forum in 10 yrs when the Dow is at 20,000+ and let us know how US Banks, Gold, and Real Estate are doing. I am not taking a shot at you, its not your fault. Financial education in this country is absurd, that is why people need advisors. Listen to your broker and tell your cousin and your uncle that once the market bounces off these prices, whether it be tomorrow or 3 years from now, they will never see them again.
Also go to nickmurray.com and immediately purchase and read Simple Wealth Inevitable Wealth and follow it to a tee. You will retire with a smile and your cousin and Uncle will probably have to live with you.