Lose Money, Get Shot!
Jul 23, 2022 17:20:47 #
I don’t remember the exact month in which back Friday and Monday happened, but all the stock markets took a terrific dive. On Friday the Dow dropped over 500 points and on Monday another 700 points!
At Merrill Lynch, my Quoton (computer terminal) was showing the drop but when it got to a negative 300 points, it did not know what to do since it had not been programmed to go further than that. So, at 301 and lower, it showed it as a gain, like 299 and started climbing, rather than to continue down. It was so crazy, there was nothing to do buy laugh.
There was no point in putting in an order to buy or sell anything, because it would be weeks, at least three, before that trade would have been executed. No one knew where the market would be then. Some of my clients called to ask what I thought they should do, and I suggested they sit tight, it would blow over. It did, in less than ten months, they were at new highs.
I learned then when you are in a world of chaos, just sit tight. Everything is completely out of your control, but it will stop, so sit tight. In another incident, much like what I have just described I had a younger broker in my office in tears because of the intense pressure of all the uncertainty. He had been a Marine officer and been in combat, but he had exceeded his stress level and on the verge of tears. He came to visit me in my office because I appeared to not be particularly bothered or stressed out. I jokingly told him this is why you are paid the ‘big bucks’, to stand the heat and not panic.
My philosophy was ‘don’t panic, don’t run’ because it will all blow over eventually. Your clients want to know you can stand the heat, that you know what to do, and will keep them informed. I never lost a client because of a market correction. I suppose there are times when stress of the unknown is a greater threat than bayonets and bullets.
However, this wasn’t the way it played out in one Merrill office in Miami, Florida. It seems there was a former Mafia member who had been given a new identity and money to reveal his sources and information to convict other members of his family.
With his money, he had opened a brokerage account at Merrill. Rather than just buying stocks and bonds, he chose to take a much riskier approach with options and futures. So, the crash wiped him out. He goes to a pawn shop and buys a handgun, ammunition, and a briefcase. He then goes to his Merrill brokers office for a conference with both the broker and his branch manager. There he shoots both the broker, the manager, and himself. Killing the manager, himself, and seriously wounding the broker, paralyzing him for life.
It has always been vital that brokers know their clients, but that doesn’t extend to a psychiatric exam. I really don’t know what could have been done differently in that case. There’s no way you could anticipate a shoot out! Just Sayin…RJS
At Merrill Lynch, my Quoton (computer terminal) was showing the drop but when it got to a negative 300 points, it did not know what to do since it had not been programmed to go further than that. So, at 301 and lower, it showed it as a gain, like 299 and started climbing, rather than to continue down. It was so crazy, there was nothing to do buy laugh.
There was no point in putting in an order to buy or sell anything, because it would be weeks, at least three, before that trade would have been executed. No one knew where the market would be then. Some of my clients called to ask what I thought they should do, and I suggested they sit tight, it would blow over. It did, in less than ten months, they were at new highs.
I learned then when you are in a world of chaos, just sit tight. Everything is completely out of your control, but it will stop, so sit tight. In another incident, much like what I have just described I had a younger broker in my office in tears because of the intense pressure of all the uncertainty. He had been a Marine officer and been in combat, but he had exceeded his stress level and on the verge of tears. He came to visit me in my office because I appeared to not be particularly bothered or stressed out. I jokingly told him this is why you are paid the ‘big bucks’, to stand the heat and not panic.
My philosophy was ‘don’t panic, don’t run’ because it will all blow over eventually. Your clients want to know you can stand the heat, that you know what to do, and will keep them informed. I never lost a client because of a market correction. I suppose there are times when stress of the unknown is a greater threat than bayonets and bullets.
However, this wasn’t the way it played out in one Merrill office in Miami, Florida. It seems there was a former Mafia member who had been given a new identity and money to reveal his sources and information to convict other members of his family.
With his money, he had opened a brokerage account at Merrill. Rather than just buying stocks and bonds, he chose to take a much riskier approach with options and futures. So, the crash wiped him out. He goes to a pawn shop and buys a handgun, ammunition, and a briefcase. He then goes to his Merrill brokers office for a conference with both the broker and his branch manager. There he shoots both the broker, the manager, and himself. Killing the manager, himself, and seriously wounding the broker, paralyzing him for life.
It has always been vital that brokers know their clients, but that doesn’t extend to a psychiatric exam. I really don’t know what could have been done differently in that case. There’s no way you could anticipate a shoot out! Just Sayin…RJS
Jul 23, 2022 17:35:23 #
Robert J Samples wrote:
I don’t remember the exact month in which back Fri... (show quote)
Yep like playing card if you can’t handle the pressure you better go home. Thank RJS for the story you one of the lucky ones 👍🏽👍🏽😎😎
Jul 23, 2022 18:01:49 #
Robert J Samples wrote:
I don’t remember the exact month in which back Fri... (show quote)
That (suicide) happened to a lot of people when the market (NASDAQ bubble) bursted around the turn of the century.
I personally lost over
$370K in gains I had made the previous 18 months on a $100K investment in risky tech stocks. I was SURE it would rebound quickly;
I was W R R R O N G !
Many older people lost all their retirement and savings and were financially devastated.
I was fortunate; I still had a thriving business and healthy enough to continue working till 2017, when I retired.
Before the “bubble busted”, I was planning to retire within a year or two, and had already let all my employees know that so they could start making their own plans to find another job. The
NASDAQ dropped SO quickly, I had to cancel my idea of retiring and, as a result, didn’t lose any employees.
It was really tough losing all that money, but at least (before the crash) I was able to financially help our Church, the youth ministry at KU, and my parents and siblings. I believe now, that was God’s plan and NOT “early retirement” for me. I totally trust His plans over mine!
Jul 23, 2022 18:11:23 #
kandydisbar
Loc: West Orange, NJ
That's a mentality I cannot relate to. Sad.
Survived 2008, bought at lows and did pretty well. This one here now I am not enjoying as it is time to retire [forcibley] and will need the funds to relocate.
After 9/11 one third of the houses in my vacinity came up for sale. People that worked in the Trade Center. All the names are on a Memorial Wall one block up the mtn from my house. Eagle Rock Reservation.
Survived 2008, bought at lows and did pretty well. This one here now I am not enjoying as it is time to retire [forcibley] and will need the funds to relocate.
After 9/11 one third of the houses in my vacinity came up for sale. People that worked in the Trade Center. All the names are on a Memorial Wall one block up the mtn from my house. Eagle Rock Reservation.
Jul 23, 2022 20:15:06 #
While I am now retired, I am not supposed to give financial advice. But if you are close to retirement, back off from your exposure to the Equity markets. Now that doesn't mean selling proven cash cows that have been paying good dividends for years, and are likely to continue.
But pull in your horns, and be satisfied with lower growth. If you don't the market will do it for you and it will be more painful. Just Sayin...RJS
But pull in your horns, and be satisfied with lower growth. If you don't the market will do it for you and it will be more painful. Just Sayin...RJS
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