Thursday, December 11, 2008
My Losses: 72%
Back in Kever Benjamin City, I find that my capital has contracted 72%, that is, if I had 100 peanuts four months ago, now I have only 28 peanuts, and I haven´t consumed any peanuts at all. Some of my stock like the Israel Corporation lost 90% of its worth in this short period. Paradoxically, the Israel Corporation and Israel Chemicals had very profitable years and are paying me fantastic dividends, so their loss of value is due to people becoming blindly afraid to put their savings in the stock exchange, selling their stock at any price, some corporations and banks needing cash to pay back debts, and the mass selling of investment funds by the public (they always sell low). Also foreign investors have retired from the TASE. Stocks will start growing back when people start to have confidence in the stock exchange, that is, after the bull market gets going and achieves some traction. We need that the Americans start inflating their dollar.