Confess everything! What country ETF?
Everyone makes these mistakes in investing so you just learn and move on.
In the past I've sold stinkers and felt good about it as I didn't worry about it any more. Once I accept I took the loss I just move on. But depending on the investment it could make sense to wait it out. But if it really is bothering you, and doesn't fit into your portfolio strategy, I'd just sell it and put the money somewhere that you think will be more productive.
Tanked position: sell or hold?
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Re: Tanked position: sell or hold?
Last edited by craigr on Fri Aug 13, 2010 12:37 pm, edited 1 time in total.
Re: Tanked position: sell or hold?
Oh boy... craigr is the one I can not hide anything from.craigr wrote: Confess everything! What country ETF?
Everyone makes these mistakes in investing so you just learn and move on.
RSX (Market Vectors Russia). Heavy on energy stocks. The ETF itself is new, but I was blinded by a nice multiyear run of a similar closed-end fund Central Europe & Russia Fund Inc. (CEE). Note the nice 3-digit return scale on the right - hundreds of %%:
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: Tanked position: sell or hold?
Sell it.
No rule of law = no respect for contracts = too much risk, especially to foreign capital.
The fact that Russia has terrible demographics would seal the deal for me.
No rule of law = no respect for contracts = too much risk, especially to foreign capital.
The fact that Russia has terrible demographics would seal the deal for me.
Q: “Do you have funny shaped balloons?”
A: “Not unless round is funny.”
A: “Not unless round is funny.”
Re: Tanked position: sell or hold?
I know this all firsthand. I saw the '98 Treasuries bubble bust and 4x currency devaluation in one day, the merchants were closing the stores, the ATMs didn't work. For over 2 decades now Russia is talking about moving from resource-oriented economy to technology-oriented, but this is very hard to do when you literally sit on vast oil and gas reserves. To be fair they try to improve demographics by throwing in some carrots: every woman gets ~$10,000 for the second child, but this is hardly enough in light of all other issues.MediumTex wrote: Sell it.
No rule of law = no respect for contracts = too much risk, especially to foreign capital.
The fact that Russia has terrible demographics would seal the deal for me.
Yep, I was blinded by the 2002-2008 nice run of Russian market. Maybe if it were less spectacular I wouldn't fall into the trap. I'm so glad to have discovered BH and PP. Better late than never.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud
Re: Tanked position: sell or hold?
Done. Sold it all and feel great. No more skeletons in my closet.MediumTex wrote: Sell it.
Thanks everyone for sharing your thoughts.
"Let every man divide his money into three parts, and invest a third in land, a third in business, and a third let him keep in reserve."
- Talmud
- Talmud