Divorce Information

Divorce and the Stock Market


The most recent statistics show that about 50% of all marriages end in divorce. It is not very encouraging to enter into any kind of relationship knowing that it only has a 50/50 chance of being successful. Failure at anything is never pleasant, but there is one good thing about divorce. You are now free to try again and hopefully this time you will not make the same mistake.

Now I want you to think about divorce and the stock market. Do you own any stock or mutual funds that are selling for less than you paid for them? If you have owned any equities during this past three years I will be willing to bet you have some losers in your portfolio. Don't you think it is time to think about a divorce, a divorce from a losing situation?

Suppose you sold everything today and put it all in a money market account paying 1%? I know what you think about 1%. Suppose you had dumped those losers 2 years ago and been in cash all this time? Would you be money ahead at 1%? I'll bet you would.

You may be saying you don't know whether this is a good time to sell or buy more. Here in one way to make that decision. Analyze the stock or fund you have. If you would not buy more of it now then the smart thing to do would be to sell. And don't fall for the big Wall Street lie about dollar cost averaging.

Here is another way to determine how and when to sell - let the market tell you. You can place a stop-loss order with your broker for any amount you wish. Say your stock is selling for $20/share. I like to limit my loss to about 10% so I have my broker enter an order to sell me out if the stock drops to $18. If it keeps advancing I raise the stop loss order every week so that it is trailing along behind about 10%. When it advances to $30 my stop would then be at $27. This way I don't have to guess about where to get out. Brokers don't like to do this because they have to watch your account, but don't let him talk you out of it. You don't want to lose everything like you might in a divorce. Limit the damage. If you own mutual funds you will have to watch these yourself as you cannot place a stop-loss order; you have to call the broker to tell him to sell.

When you are in a bad marriage things just seem to get worse and worse. You could lose everything. When you are in a long-term bear market as we are now it is the same. Your financial assets become less and less. At least in the stock market you can limit your losses. Don't call a lawyer, call the broker and get out.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.


MORE RESOURCES:

The Associated Press

After divorce, Bill Murray looks for renewal
The Associated Press - 10 hours ago
But Murray said he identified anew with those characters — like the dour Herman Blume in "Rushmore" — when his wife of nearly 11 years filed for divorce in ...


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The Associated Press - 11 hours ago
WASHINGTON (AP) — If William Kennedy had updated all his financial paperwork in accordance with his divorce decree, chances are his daughter would not have ...


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Chicago Sun-Times, United States - 8 minutes ago
Bill Murray says he was so depressed because of his divorce from Jennifer Butler that he didn't care if he had a chute when he went skydiving in August at ...


Lekota: ‘We are serving divorce papers’
The Times, South Africa - 14 minutes ago
... or whether marriage counselling would be taking place, Lekota joked that he was announcing the intention to serve divorce papers. Ho ho ho.


ABC News

Peter Cook Speaks Out About Christie Brinkley Divorce
People Magazine - 8 hours ago
By Sharon Cotliar Three months after their bitter divorce was settled, Christie Brinkley's ex-husband Peter Cook says he was wrongly portrayed in court. ...
Barbara Walters Exclusive: Peter Cook on Affair ABC News
Christie Brinkley Ex Peter Cook Talks on 20/20 (VIDEO) TheImproper.com
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Contactmusic.com - The TV Guy
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Bill Murray Ready to Be “Positive” After Divorce
TheCelebrityCafe.com, NY - 1 hour ago
He said the divorce in May, whose papers included claims by his ex-wife of abuse and that Murray had a marijuana and alcohol addiction, was a very low point ...


Bleacher Report

Divorce Not Finalized for Garcia and Gruden?
Bleacher Report, CA - 7 hours ago
Jeff Garcia once famously stated that Tampa Bay Buccaneers head coach Jon Gruden isn’t one to commit to a quarterback. "He likes to date, but not to marry," ...


Showbiz Spy

Pity the loving grandparents who are cut off by divorce
Daily Mail, UK - 9 hours ago
After a divorce, 42 per cent of grandparents, mostly on the father's side, lose all face-to-face contact with the small people they adore. ...
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Teeny fans mob their Troy boy Mirror.co.uk
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all 16 news articles


Save marriage by tackling divorce
Albany Times Union, NY - 4 hours ago
It seems to me that if Mr. Hayford really wants to save marriage, why not begin by doing something about the 50 percent divorce rate. And while at it, ...


The 'divorce diet' melts off pounds
Dallas Morning News, TX - Oct 6, 2008
It's the "divorce diet," a phenomenon known all too well to survivors of painful breakups: the tendency to lose a lot of weight, quickly, ...

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