Unless all transactions are voided during the period of the collapse, my father is going to lose all his financial planning clients.
He had stop losses set for all of the accounts. A representative example: One of his clients had tens of thousands of dollars at $61/share in one of a few ETFs he has been selling. He had set a stop loss of $59/share, thinking that would protect his clients from major downside risk. Unfortunately the ETF dropped briefly to near zero and bounced back up. So, the stop loss was triggered but all his client's shares sold at $0.15/share. A 60K account became a couple hundred dollars in 20 minutes. Somebody bought those shares at $0.15/share. And reaped the immediate bounce back in price. If you don't believe me, look at this chart: <http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=RFG&sid=0&o_symb=RFG&x=0&y=0> You could type in almost any ETF symbol and the picture would be the same. Try RWL or QQQ. QQQ only went down briefly to half its value. Notice the perfectly vertical line near the end, the horizontal line at the very end, where it closed. That was just one of dozens of cases, where a stop loss became a total loss in mere moments. It would have been better if he had no stop loss on those accounts, but then these conservative middle class investors would not have been comfortable taking positions in the market. Now THAT'S how you "spread the wealth around"! - Publius On Thu, May 6, 2010 at 3:00 PM, Michael Madigan <[email protected]> wrote: > No need to fear, the Kenyan is here! > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
