The stock market’s down: Should I sell or hold on?
Dear Nanay,
The stock market has recently taken a big fall. I made some investments a few months ago and I am afraid that I will lose all my money. Should I sell already, even at a loss, or should I hold on? Mary Ann
Dear Mary Ann,
I have been asked about investing in the stock market quite a number of times and the first thing I always say to people is to remember that investments in the stock market can go up but they can also go down. You can make money, but you can also lose money.
Depending on what stocks you buy, over the long term, the stock market will probably make better returns for you than a time deposit or a savings account. The only problem is that sometimes it takes several years before you can actually make money. Malaki nga ang kita pero madalas, sobrang tagal naman bago ka kumita. (The profits are large but often, it takes a long time to see those profits.) This is the reality that you have to weigh against your possible immediate needs for your funds.
With regard to your current situation, I think you are in the same predicament as many other investors. Should you sell at a loss or hold on? I think you have to ask yourself why you want to sell now.
If you need the money to pay for tuition, your credit card or mortgage, then no question, go ahead and sell your stocks. Even at a loss. But if you sell your stocks at a loss now and then just leave it in your savings account, then you might want to consider just leaving your investment and hope that the market recovers in the coming months. It is a difficult decision that unfortunately only you can make, given your current needs. Talk to your financial advisor about your problem and together you can probably come up with a sound decision.
For anyone investing in the market for the first time, here are a few pieces of advice: First, the stock market is not for the faint of heart. If you lose sleep over the ups and downs, I suggest you find a more conservative form of investment. Second, huwag makinig sa tsismis lang (don’t listen to mere gossip)! Just because your neighbor said that she heard somewhere that a certain stock will go up doesn’t mean you should run out and buy it. Third, only put in what you can afford to lose or you can afford to leave invested for a very long time. Kahit na gaano ka kagaling sa (No matter how good you are at playing the) stock market, you never know when it will go up or down. And you will never know when you can get your money back again with a profit. And maybe most importantly, unless you know what you are doing, get good financial advice from your banker, stockbroker or financial advisor.
Sincerely,
Nanay
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Tired Of Mall Culture
Dear Nanay,
I have two children – ages 5 and 7 – and every weekend we go to the mall. It is the same routine every week. We watch a movie, do a little shopping and eat somewhere. I want to do other activities with them but it seems like all we can do in
Dear Leo,
Since you have spent many weekends in malls, I think it may be time for you to let your children discover the outdoors. Take them to Luneta. Visit the
Or even better, take them to a museum. Unlike many other countries in the world, we unfortunately do not have an active museum-visiting culture. But museums are a perfect place for your children to learn about the history, culture and art of the
And why limit yourself to
Sincerely,
Nanay
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