Days like this used to make me mad and sad. Not anymore.

Here’s my little story on why I hate the stock market even though I’m a finance major and actually went to school so I could defeat it. Back in ’07, I had worked for 2 years straight and my dad was overpaying me for my abilities. I had 0 expenses. Like literally 0. I lived at home. Drove my parents cars. Ate their food. 0. I amassed close to 40k in those two years of saving.

guy_jumping_off_a_buildingI read a book called the “greatest investment book in the world”, or something to that effect, and it suggested to put 1/3 of your allotted investment money in the Vanguard Total Stock market index, 1/3 in the international fund, and 1/3 in the bond fund. Minimal expense funds. I took all of that money and did as was suggested. In ’08 the stock market crashed. In a short period of time (~1 year) my 40k was worth 20k. It’s easy to look at a historic chart and say, “well stick with it, it will come back.” The Dow dropped all the way to 7k (it’s at 16k now) and there were talks that the entire financial system could collapse. In periods of time like that, you think the market is going to 0, not going back to 10k.

I ended up selling and taking a 20k loss. Since that period of time I was so soured by the market that I missed the entire recovery and have sat on the sidelines since. To this day I dabble with small plays but nothing like I did before. My financial adviser who oversees my retirement fund thinks I’m an idiot. It’s days like these that I remember why I don’t miss the action. I miss all the gains and I miss all the losses. Today is just another day to me.