Markets: Are rich people losing money too?

Question

I lost 13% in the last 3 months. Are rich people losing this much or did they switch to t-bills bonds and such before the looming recession?

Answer 1

I feel its not like that. It would be unfair to categorize traders Rich and Poor. Traders are successful and failures.

I do not have big capital in the market but the important point here is the intelligence by which you enter into the current market. Because the market is very volatile now it is important to choose correct stocks. My dealer is providing me with stock tips which are very useful and safe. I am working with calculated risk and try to grasp small profit. this is how i am gaining at such a unpredictable market. Our timings should be clear and working on nullified risk portfolios is also a good option.

Answer 2

Rich people can be losing money but there were sectors befor the las 3 days that were going up and well over double digit gains such as oil,nat.gas, commodities and natural resources such as steel,railroads,coal so with proper asset allocation and sectors and cash equivalents one could have made money or have lost less.

Answer 3

Mr. Thornburg, CEO of Thornburg Mortgage (TMA), purchased several $million of his company stock in July, 2007 for around $27/share.  He did not sell.  The stock is now selling for around 20 cents/share.  He lost much more than you will ever lose.  I expect more bear market for the next 12 months.  Good luck.  Jack

Answer 4

There are lots of rich people losing money as well. It just so happens that they have more money to lose.

Answer 5

They certainly are to varying degrees, the difference is that the wealthy are busy buying as they are seeing losses in anticipation of the next upcycle whereas the novices are busy panicking and selling to the wealthy at deep discounts. Thus, the markets are transferring wealth with every cycle from the weak hands to the strong hands.