News Flash: You Can Lose Money

Don't assume that stock investing carries little risk. I've told you about many of my investing blunders over the years, including the tale of how I lost $200,000 of my own money. Investing in the stock market can bring lots of rewards, but I certainly hope I haven't suggested that it'll always be easy. Reader Rich Hill recently wrote: "I read your article about retirement and you make it sound like if you invest in the market, you will do well. ... I hate to think of the people who started investing a year ago and are now down 30% to 50%." Good point, not to mention a good reminder that stock investing involves risk. In fact, people can suffer losses over much longer periods than a single year. Again, I can point to myself as an example: I bought shares of Coca-Cola (NYSE: KO) some four years ago, and they were underwater... [read full story]