The Lowdown on Blowups
Some tips on dealing with big single-day declines.
We rarely get to the closing bell these days without some stock experiencing a massive single-day decline. With seemingly random drops of 20%-plus being virtually routine, practically any portfolio can get slammed.
Some even endure the El Grande of blowups, the 50% one-day haircut. My first such blowup dates back to February 10, 1992, and involves the first stock I'd ever doubled my money on, MGI Pharma (MOGN). I'm still trying to block out the memory, but the conversation with my broker went something like this:
Josh Peters, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.