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I have a question involving the stock markets and investing. I don't know a lot about it, I have a financial advisor that does it for me. I wonder why when the markets go down so much do we lose on our total investments or just $$ on the monthly dividends paid because the company's invested in are not making as much profit?

Gemini-1947 7 Mar 6
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you won't lose anything if you hold & the mkts come back up.
you might lose some dividends. if a company can't make enough profits to cover them they may cut them.
this week i had an oil company cut it's dividend in half b/c the price of oil is so low.

Thanks. I don't have any in oil. Everything is so down. It should be a good time to buy. Oil is bound to go back up. I have some in Eaton, Pfizer, Molson Coors, Verizon, Wheaton, and several others. I'm hanging in there. That's my advisors' advice.

@gemini1947 , i have some fairly big bets in oil stocks which i bot last week. if this covid turns out to be really bad i could be in for some pain but i'm prepared to buy even more. oil has always come back. so unless the human race is wiped out i think i'll be OK & could see some large gains.

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Depends on how things are set up . As I understand it , some are treated in much the same way as you making payments on your real estate (home) . In other cases , the dividends are voted on by the board of directors based on profits from the preceding period . At a predesignated time , accounting puts together charts , papers , etc , showing the board of directors profit earned for the previous period , what they expect things cost to manufacture , advertise , distribute the following year , anticipated costs for the coming year for wages and the golden parachutes , if they become necessary , taxes , costs for buying a smaller competitive company , costs for expansion , etc , and how much to put aside for future unexpected costs . They decide how much is available for the investors and divide the amount up per share . As far as the value of your investments go , the value of things and money both vary . Right now , the coronavirus , can affect a LOT of products , because of the things China provides . For instance , a lot of rare earth metals are mined in China . Investors are concerned that things made of those rare metals ( computer chips for instance ) and are very uncomfortable about the availability of those rare minerals . Can't get the metals , can't supply the computers . Profits go down . Want to make some money , buy their stock while the market is down , sell them when they go back up in value , assuming the company hasn't gone out of business in the mean time . Hope this helps , hon !

Cast1es Level 9 Mar 6, 2020

Thanks for your info. I appreciate any advice I can get. I have faith in the guy that is doing the investing for me but he makes his share of it too. I wish I were good enough to do it on my own. I would probably lose it all if I tried that.

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Posted by Cast1esReal estate can be a good way to invest , even if it's only the home you live in , but sometimes , there are unexpected costs .

Posted by Cast1esReal estate can be a good way to invest , even if it's only the home you live in , but sometimes , there are unexpected costs .

Posted by Cast1esReal estate can be a good way to invest , even if it's only the home you live in , but sometimes , there are unexpected costs .

Posted by Cast1esReal estate can be a good way to invest , even if it's only the home you live in , but sometimes , there are unexpected costs .

Posted by PinkyandtheBrainGood correction. I actually consulted with a lot of people.

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