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American Morning

Some Investors Not Reading Statements

Aired July 29, 2002 - 09:55   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JACK CAFFERTY, CNN ANCHOR: So many people have lost so much money in the stock market lately, some investors have developed a brand new strategy: If you don't look, you can't tell how badly you're doing.

Jeanne Moos makes her statement now on "The Moost of It."

(BEGIN VIDEOTAPE)

JEANNE MOOS, CNN CORRESPONDENT (voice-over): The envelope please. Please, I'd rather not.

UNIDENTIFIED MALE: I don't look at it, because it's too scary.

MOOS: Is your 401(k) not OK? Did that $100, 000 you invested in a tech fund dwindle away?

(on camera): Are you guys invested in the market?

UNIDENTIFIED FEMALE: Yes, and we're flipping out.

UNIDENTIFIED FEMALE: Are you invested in the stock market?

(LAUGHTER)

MOOS (voice-over): Remember when it used to be fun to get your statement?

UNIDENTIFIED FEMALE: Because it was going up and up and made me feel so wonderful!

MOOS: But, up and up has given way to:

(BEGIN VIDEO CLIP)

LOU DOBBS, CNN ANCHOR: One of the worst weeks ever.

UNIDENTIFIED FEMALE: Wiped out.

UNIDENTIFIED MALE: Took some beatings today.

UNIDENTIFIED FEMALE: Trepidation and pessimism.

(END VIDEO CLIP) MOOS: If your summary is all loss and no gain, if you are feeling aggressive about your negative growth, who needs a statement?

UNIDENTIFIED FEMALE: No, I don't open it, if that's the question.

UNIDENTIFIED FEMALE: You should talk to my husband. He won't even open them.

MOOS (on camera): Is that true?

UNIDENTIFIED FEMALE: That's the God's honest truth. If I open them, he gets agitated.

MOOS: So, you have a big pile of unopened statements somewhere?

UNIDENTIFIED FEMALE: Yes.

(on camera): Like how high?

UNIDENTIFIED FEMALE: We don't throw them away.

MOOS (voice-over): just toss them in a file and close the lid.

UNIDENTIFIED MALE: I don't look at it. I just go out and try to make a living and make more money so I can put it in the market and lose it.

MOOS: Actually, the bear market has produced two camps: those who can't bear to check their accounts, and those who can't bear not to.

UNIDENTIFIED MALE: We want to know everything. We want to see how much we are getting nailed for.

UNIDENTIFIED FEMALE: The past couple of weeks, I check it almost hourly.

UNIDENTIFIED FEMALE: Because I prefer reality to fantasy.

MOOS: This is reality.

UNIDENTIFIED FEMALE: I bought it, it was worth $20, 000. Now, it's worth $10, 000. Ouch. It's only a matter of less than a year.

UNIDENTIFIED FEMALE: I hope I live long enough for mine to come back.

MOOS: Some advisers say it's best not to realize your loss.

(on camera): So your stockbroker is saying don't open your statements?

UNIDENTIFIED FEMALE: Yes.

MOOS: He actually said that? UNIDENTIFIED FEMALE: Yes. He said, you don't need to read those.

MOOS: My stock broker said something similar. He said he doesn't open his statements when it's like this.

(voice-over): One economist called it "rational," and even "therapeutic" not to read your statements, if you are in for the long term. The head of a discount brokerage had this advice.

MURIEL SIEBERT, CEO, SIEBERT & CO.: You pour yourself a big scotch and you put it in the other room, and after you finish reading it, then you go and you drink the scotch.

MOOS: And when those market updates come on the TV...

UNIDENTIFIED FEMALE: He turns the channel, and if I want to watch, he gets up and leaves the room.

MOOS: All those minus signs on your statement can add up to a state of shock, an account not worth taking stock of.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

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