Will Many Sell DVC to Cover Fridays Losses?

[Richnj]

I hope this does not apply to anyone, but I was woundering if anyone was thinking of selling their DVC intrest to cover any margin calls after fridays loss in the market.

 

[dizfanz]

Rich, sorry to hear that you took a hit Friday. I am a financial advisor and a DVC nut. I would not recommend that you sell DVC to cover a loss. You should always have a fund to cover such losses, so you do not have to sell your family's vacation. In my opinion, the existence of an emergency fund is more important than the margin calls you are trying to make a profit with. With the instability right now, I would take a buy or hold stance with your portfolio. Remember, you have not lost anything until you sell. Unless you are highly experienced with the companies you are dealing with, start building an emergency fund in a low risk mutual fund(ie: money market fund) so in the future you will be better prepared.

 

[TheRustyScupper]

1) If your losses are large or your need a margin call, maybe.
2) If there is ample backup, then I doubt it.

 

[Doctor P]

I seriously doubt it.

 

[disynut]

We won't, but we have a while before retirement. I can see how some people might really be panicking, if they are close to retirement. I haven't even been looking at our statements-until a few days ago I finally took a peek at the mutual fund we started for our son when he was born(2 years ago)-it was worth less than half of what we started with!!! Very depressing!!! I know some people say now is the time to buy, and we have a little, but it is hard to do!

I hope no one has to sell DVC to cover losses Friday!

Jen

 

[AnnaS]

Jen, we also invested only for one of my children in mutual funds (rest in US Treasury strip bonds?) about 10 years ago. It had just about tripled about 1-2 years ago. Now it's almost at what we put into it as our initial investment.

 

[Mouse Ears]

We won't be selling our DVC interest, but we are going to have a rougher time paying the rest. In late June, we charged the first part of our initial DVC purchase at BCV to our credit card and will be paying the rest this week. The catch is that the true source of funds is stock that is now worth 20% less than last month when we made the decision, so we will have to sell some extra shares (or carry a balance on the cards and pay interest).

So, as it turns out, DVC is costing us more than we expected. I wish we would have sold the stock last month to lock things in, but I keep thinking that things are pessimistic enough that the market has to be close to bottom. I'm just glad we can still afford it!

Oh well, live and learn!

M.E.