The Citi sandbank problem?
I hold some Citi bank stock, it seem to be going down every day,can Citi dune go down to nothing?Answers: It can,anything can happen, but it's not deeply likely
surrounded by theory, yes
will that in actuality happen inwardly any reasonable time frame?
I doubt it. Suppose they lost another $20 billion on funny loans and stuff. Would that break the wall? I don't think so.
In supposition they could go to 0. surrounded by reality they wont. in attendance are several reasons for this:
1) the hysterics that it would cause on wall street would be gigantic. a few months ago when it be rumored that they might be going bankrupt the open market fell ~800 points, if they really went underneath the DJI could easily dive ~1,500 points.
2) they have a ton of $ within savings accounts, the money within those accounts is more than it would cost to get them support on their feet.
3)while some of their assets are awful they enjoy eoungh good assets to take home them a very attractive buyout entrant if their shares reach $10.
contained by the first 2 cases it would make sense for the goverment to contribute them some money (it would of course be call an investment) in the end case other bank would help out.
at this point I would say aloud dump the stock, the managment is comprized of morons and they have over $100B (I believe) within poor quality mortgages. also no mound does well surrounded by a recession (which appears to be where we are headed).
I would suggest that in the past you invest more $ you investigate the company in which you are interested more thoroughly. read the latest annual and quarterly reports and net sure that EVERYTHING that they do makes sense.
Are there any other relatively safe investments out there other than preferred stock that yield between 7-8%?
Answers: Better put your money in Belarusian bank. You will get a 13% rate of interest with NO RISK AT ALL because all deposits are state insured.
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Good luck!
In the long run, yes - many index mutual funds average that. In the short run, no guarantee.
When is it a good idea to sell below cost?
Answers: The only times I would recommend selling below cost, if you are an investor, not a trader, would be:
1. If you cannot psychologically handle the losses, even while the stock's fundamentals don't change.
2. If the fundamentals, supporting your purchase price have deteriorated to a level that could cause the stock to go lower. This is hard to decipher, but if the reason you bought the stock changes, and it no longer is appealing, you might want to reevaluate your position.
3. If you have found, what you believe to be, a better opportunity in the market.
You should try to sell any position that you are having problems that concern you within one year from your purchase date, so you can capture the short-term loss, to counteract short-term gains you have incurred, as short-term tax rates are much higher than long-term. Of course, if you sell a position at a loss, and you have another position that has done well within one year of your purchase, and you believe the risk/reward profile is no longer as appealing, this presents you with a great opportunity to lock in your short-term gain while not incurring negative tax consequences. Just some thoughts, I hope they helped!
Best of luck!
Brendan Prewitt
President, New York Capital Investment Group LLC
when the market price become low n low each day, u'll get loss. to cut loss, u hav to sell it below cost as soon as possible, because more longer u hav it, more u get loss. If u can speak indonesian, i can explain it much, because i hav a bad english.
Best regards,
Ervina, SE