Financial Check Up

I recently read this post at

Q: Pam asks, “After my portfolio value dropped by 40%, I panicked and pulled out of the stock market. I have $150,000 sitting in my savings account, earning squat. I know I should put it back to work, but with the state of our economy, I don’t know what to do with it. Any thoughts?”

I cringe when I read those questions. It reminded me of the free financial advice I gave almost two years ago. That included this image:

Since it’s almost two years later, I thought it would be interesting to see what the real chart looks like. Data Source

I didn’t quite hit the bottom with my “You Are Here” star. That actually happened on March 9, 2009. And the rebound slope isn’t as steep – yet. If we look at it again in a couple of years it may be. Nevertheless, that free advice is currently worth about $300.00 for about a 15% annualized return. I don’t think Pam is making that in her savings account.

Hat tip to this page for how to use a star as a marker on an XY chart.

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2 thoughts on “Financial Check Up

  1. And if you’d have given the advcie a few months earlier…you I still be down/about even…

    But I guess if you invest in good stock and play the long game your fairly safe, the question here Dick is what to investing it, is that the market performance, but what’s the SD?

    Your chart was a good prediction though – I wish I had 150k sat around to invest. I would by a house I think!


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