My Life Lesson: You Can't Rely on Things to Be What They Appear to Be

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I was going to post this on a stock market thread, but then thought about it, and how it applies to almost anything . . . people, marriage, jobs, consumer products, financial products and on and on . . . just about anything you run into in life.

I thought about Nothing is What It Appears to Be, but some things are. For instance, your stock portfolio is what it appears to be.

It may be Most Things Are Not What They Appear to Be. In any event, enough things are not what they appear to be that you can probably count on it as a life rule.

What I mean is that for most things you really don't know if they are what they appear to be until you have to find out . . . you use stuff and they don't work like they appeared they would . . . you go to work and find out a job is not what it appeared to be, both good and bad . . . you get to know people, better, and find out they are not what they appear to be, again both good and bad.

You never know what something really is like until you actually dig into it. Until you do that, you just assume they are what they appear to be.

What prompted this is the statement I get from American Century. Three times in the last week I have asked them to sell stuff for us, but they cannot make a market anywhere near what my statement says the market is.

The statements are updated supposedly to reflect the market and I check on them online, not on something generated a month ago. However, right now, for instance, they can only get $144K for stuff they are showing is worth $172K.

If they know enough to know they can only get $144K, why show $172K, and where in the ---- did they get that figure?

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

172k probably is based on the last time a deal was agreed upon. 144k is someone's current offer. Unless you want to accpt it, it will not really represent anything.

Like some of the house in the market, the neighboorhood recent selling price say is around 350k, and the owner put a number that is very close to this, if a buyer counter with 250k, you can not based on that say the house only worth 250k. before the owner accept that offer, he will still be able to get apprisal value at 350k.

It just show you the illiquid of a lot of asset class. Thus, in order to own them, you need figure out how to support tham in best and worse situation.

I have grown in a country at a time when stock market is very illiquid. In fact, USA still recognize some of the small company's stock is totolly with no market, and willing to give hugh tax benefit when you sell it.

It is bad time, a lot of liquided market (like a lot of bond market, the IPO market) is now illiquid. Wish you best luck to find a deal that you are willing to take.
Jya-Ning

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

You sound like them. Except you need to also say, "There's a bid and an ask."

So, keep it updated better, or, show the bid and ask, and explain what it is you are showing. Not much to ask.

How would you feel if your brokerage statement, online, said something was worth $71.80 when they could only get you $57.50, or $68.646 when they could only get you $55, or $66.465 when they could only get you $52, or $75.636 when they could only get you $63, or $79.974 when they could only get $66.25.

What if they sold 100 shares that they showed at $71.80, and then they gave you $5750 instead of $7180? And they did that every time you sold?

Feel good about that?

I have followed it for awhile, talked to the bond desk about it, and had them make a market three times the last two weeks. It's the same every time, that the statment is much higher than the what they can sell them for. Not just a little higher, but much higher, too much higher.

The guy today, a new one to look at it, said he agreed, and he was passing on to whoever that customers' statement need to more accurately represent true values.

172k probably is based on the last time a deal was agreed upon. 144k is someone's current offer.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

That means we are talking to the same group of people

My first US stock transaction I sold something in loss, and when I get the check, it has x% of tax withhold. So, yes, 7,000 my own money is actual worth 5,000 although I already pay tax on that 7,000. I can get it back at the tax time, which does not solve my problem at the time I plan to use the money.

If they show the true value, I believe a lot of owner will awaken in the middle of the night. And then, there will be no market at all.

I think I saw a report, for the last 5 years, the more risk investment, the less the return. Treauray has the highest return. And the way the money is print, there is no guarantee that can be hold.

Jya-Ning

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

This morning our accounts are even higher, more money that they cannot really get.

Maybe I should go buy something; maybe a big chunk down on our new house, and give em these accounts.
- - - - - -

It is different than stocks. Stocks actually sell at the quotes you see, give or take the time delay on your quote service. For all practical purposes, market is market.

After hours you will see a bid and an ask, but when the exchange is open market is market.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

It is different than stocks. Stocks actually sell at the quotes you see, give or take the time delay on your quote service. For all practical purposes, market is market.

After hours you will see a bid and an ask, but when the exchange is open market is market.

Could be wrong, I think US stock market actually closed twice, once after 911, once after WWII. Not sure what actually happen, but I believe the stock is illiquidable at both time.

Not to mention they halt the trade few times like when there is a major news break, or when the whole computer send sell signal.

Ask them does it means they miss an offer for you?

Jya-Ning

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I have been asking them things, but not that.

So far their response has been to say that if Ameritrade can make a better market then I can move my stuff there. That would be a pain in the butt, setting up four new IRA/SEP accounts and moving stuff to them, just to sell it.

What I have asked today, again, is where are they getting the figures they use on their statements, and why use them if they can't make a market at them?

Actually, I get FICO strip quotes from Ameritrade, and they can't sell for those quotes either, but closer.

Ask them does it means they miss an offer for you?

Jya-Ning

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

With the declinging interest rates, the market value (American Century's term) on my strips has gone up another $4000 the last four days.

I'm really cutting a fat hog . . . on paper.

Before long I will be in the limo with BF, sipping bubbly from plastic cups, heading to our daily gourmet dinner.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

I've made another $2000.

With the declinging interest rates, the market value (American Century's term) on my strips has gone up another $4000 the last four days.

[vintner Super Moderator Find all posts View Profile Close vintner]

With the declinging interest rates, the market value (American Century's term) on my strips has gone up another $4000 the last four days.

I'm really cutting a fat hog . . . on paper.

Before long I will be in the limo with BF, sipping bubbly from plastic cups, heading to our daily gourmet dinner.

Well save me some chops from that fat hog and if it ever gets above 20 degrees, I'll throw some on the grill .

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

I've made another $2000.

Don't tell me they are using the market interest rate to calculate your potential value. If that is the case, I have some TS I can sell to them

Jya-Ning

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

It could be. YTMs are in the 2s!

Don't tell me they are using the market interest rate to calculate your potential value. If that is the case, I have some TS I can sell to them

Jya-Ning