Been lurking for awhile trying to educate myself some more - not in a position to actively invest myself due to mortgage & business factors. But I am in need of some advice - I will also talk to a financial advisor on this one.
My friend has put herself into a huge mess which I just discovered last night. Through a series of tragic incidents she had $100,000 to invest last year (before I met her) & didn't know what to do with it. She has no idea whatsoever about investing, the stockmarket, etc.
Her accountant advised her to invest it in a UBS Cash Management Trust in September 2007. It was divided among only 6 stocks split between equities & property: ARG, AFI, MLT & CNP (Centro!), GPT & VPG.
They have all tanked, especially the property groups. Twelve months later her $100K is now worth only $50K! As far as I can ascertain she was never advised to re-balance her holdings which I think is gross negligence from UBS. And from her side she took no active interest so is also to blame obviously for doing nothing earlier (but, as I said she has no idea about money & was simply following advice from the supposed experts to keep it safe & earn a little more than the banks).
What should we do? Such a massive loss...in a panic. Get out completely & stick it in Ing Direct until the market calms down & she learns how to manage her finances? I understand that the loss can be offset against future capital gains...but now we'd be hesitant to re-invest in the market, so those gains might be a loooonnggg way away.
We will talk to a financial advisor....but also looking at all avenues for advice.
Cheers for any help.