Many investors who embark on this strategy find
themselves bailing out of their investments early, unable to hold on to these stocks in the face of the drumbeat of negative information.
I wouldn't
bail out of an investment that was still undervalued simply because the market price hadn't moved.
Or given the ever - present parade of pundits making predictions about what interest rates, the economy or the markets are going to do and recommending investments that can help you capitalize on their prognostications, you might feel the urge to adopt a more active investing approach,
bailing out of investments that are supposedly about to fizzle and moving into ones ready to sizzle.
Not exact matches
First, it is now much harder for borrowers to justify
investment in non-productive projects because they can no longer count on the huge gap between nominal GDP growth and the lending rate to
bail them
out of bad
investments.
Because
of the extreme leverage, the Federal Reserve and Wall Street
investment banks had to
bail the fund
out in order to prevent widespread financial havoc.If you want to read a fantastic story about LTCM, we recommend you check
out When Genius Failed.
IKB had to be
bailed out several times by the German government after suffering billions
of euros
of losses sparked by its
investments in U.S. subprime mortgages.
 The Harper government's decision last year to write off every penny
of the auto aid and thus build it all into last year's deficit calculation (which I questioned at the time as curious and even misleading) has already been proven wrong. Since the money was already «written off» by Ottawa as a loss (on grounds that they had little confidence it would be repaid — contradicting their own assurances at the same time that it was an «
investment,» not a
bail -
out), any repayment will come as a gain that can be recorded in the budget on the revenue side. Jim Flaherty has learned from past Finance Ministers (especially Paul Martin) that it's always politically better to make the budget situation look worse than it is (even when the bottom has fallen
out of the balance), thus positioning yourself to triumphantly announce «surprising good news» (due, no doubt, to «careful fiscal management») down the road. The auto package could thus generate as much as $ 10 billion in «surprising good news» for Ottawa in the years to come (depending on the ultimate worth
of the public equity share).
Experts estimate taxpayers are currently losing almost half
of their # 45 billion
investment in the
bailed out bank.
That's why Labour needs to offer hope: a living wage, for instance; letting councils build Britain
out of its housing crisis; an industrial strategy to create the renewable energy jobs
of the future; turning the
bailed -
out banks into accountable public
investment banks; tax justice; and public ownership
of our key utilities.
Even amidst one
of the longest and strongest bull markets in history, pension plans still haven't recovered, and if pension plans fail to hit their 8 percent
investment targets every year, they will need taxpayers to continue
bailing them
out.
Time will tell how smart that was... the
investment banks
of our world are tied together through counterparty exposure — to a degree, they succeed and fail as a group... that's why the Fed
bailed out Bear Stearns.
Think
of the
bailing out of money market funds and SIVs (not the Super-SIV, which I said was unlikely to work), or the Sovereign Wealth Fund
investments in some
of the
investment banks.
That is why SIPC does not
bail out investors when the value
of their stocks, bonds and other
investment falls for any reason.
In the recent credit market turmoil, those who still hold the products will have suffered some paper losses while others who have
bailed out have lost up to 60 per cent
of their
investment.
Rather, it's more about making regular
investments a habit, in good time and bad, instead
of trying to find
out when to get in and when to
bail out based on the market condition at the moment
I commented about the current cashflow issues
of a lot
of the farming companies, but I'm sure I'll be investing again in some
of them — meanwhile, I get to
bail out of Black Earth by making a 1 minute call to my broker, and the proceeds now allow me to contemplate a listed timber company
investment instead at a huge discount...
You can
bail out of your stock - market
investments, as many investors do during steep market declines, or use these declines as an opportunity to purchase more shares at lower prices, through monthly portfolio contributions or timely rebalancing from bonds to stocks.
That is why, Clinton reiterated, Democrats must sell the
bail -
out of Wall Street as an
investment in regular Americans» retirement savings and the security
of their mortgages.
The most common reasons are liquidity (having money immediately available when a better
investment comes along) and emergency (surprise medical bill,
bailing your mom
out of jail, etc).
Unfortunately, they gradually see less & less chance
of realizing their
investment / inherent value, and start
bailing out — the stock usually then collapses in tandem with a poorly timed / priced placing or two that dilutes intrinsic value to hell.
Having thus
bailed out Goldman, and other US and foreign
investment banks that were due payments from AIG, the malodor
of aiding
investment banks in an opaque way is something the Treasury wants to lose.
3) My biggest concern is that the Obama administration is
bailing out a non-competitive auto industry that is not addressing climate change, and considers «infrastructure»
investment to mean roads and bridges and not a functioning electrical grid that will support renewable energy and other forms
of distributed energy like CHP that would greatly lower emissions.
KEY ACHIEVEMENTS • Saved a client from total wipeout by advising him to completely
bail out of a shady company's stock just in time for its collapse in the stock market • Implemented a series
of risk management procedures, which reduced client loss by 56 % • Researched a particularly lucrative shares deal which brought both company and clients a benefit
of 71 % on their
investments • Successfully trained 52 traders to handle clients» accounts, all
of whom are now operating independently within the company