Oh, what some investors wouldn't give to be down 40%

If you’re nursing a market average 40%-or-so loss in your stock portfolio in 2008, just remember: It could have been worse -- much worse.

The destruction in the stock market this year was notable not just for its breadth but for the number of huge companies whose shares were reduced to so much rubble.

The banking, brokerage and mortgage sectors led the Fall of the Titans, of course. Some of the biggest names in the financial industry wound up either in bankruptcy (Lehman Bros., Washington Mutual Inc., IndyMac Bancorp) or as wards of the federal government (Fannie Mae, Freddie Mac, American International Group).

For companies in either of those two clubs, shareholders have suffered a near-total loss of value -- between 97% and 99.9% -- erasing tens of billions of dollars of investor wealth.

By contrast, the average stock in the Standard & Poor’s index of 84 major financial names is down 59.8% for the year, compared with a 40.8% drop in the broad-based S&P 500.

But the financial sector didn’t have a monopoly on stockholder wipeouts. Shares of telecom giant Sprint Nextel Corp., for example, are down nearly 87% this year, to $1.75 on Monday, hammered by mounting customer defections that have slashed revenue.

General Motors Corp. shareholders have lost 85% this year, with the stock now at $3.60. The company averted bankruptcy with a last-minute loan from the U.S. Treasury, but its long-term survival remains a question mark.

The crash in consumer spending this year also devastated Riverside recreational vehicle maker Fleetwood Enterprises Inc. Its stock has dropped 98%, to just 11 cents. On Monday the New York Stock Exchange said it would delist the shares.

Finally, the retail sector is loaded with casualties among well-known names. Shares of Anaheim-based Pacific Sunwear Inc. are down 89% for the year, to $1.60. Liz Claiborne Inc. also has fallen 89%, to $2.20.

And investors aren’t done bailing on some retail names, after the disastrous holiday shopping season: Shares of L.A.-based American Apparel Inc. slumped 15% on Monday to a new low of $1.55, bringing the stock's year-to-date decline to 90%.

-- Tom Petruno

Comments

[martscan]

When I was a little boy, active and adventurous, I fell out of a tree and suffered scratches, sprains and great pain. As my mother tended to my cuts and abrasions with Mercurochrome and bandages, she tried to assuage my suffering and apprehension by telling me of all the little boys in the world who had broken arms, broken legs and, God forbid, worse. In her way, she was trying to make me feel better. It didn't work then...and it doesn't work now.

[Trudy Self]

And then there are all the funds that invested in the above...

[Joel]

Well Martscan you may want to look at it from another perspective...There but for the grace of God go I. There ARE huge numbers of people who ARE in worse shape than you and I. You need to look beyond just yourself and try to grasp the "big picture" my friend. It's not all about you. I lost a fair amount of money this year myself but I consider myself quite fortunate. Why? Because I have a relatively secure job, little debt and the ability to make up the ground I've lost this year. That's the reason why I donated money and goods to shelters and other organizations this year (and every year). It's not just the money. It's life. Live it.
Peace

[Bob]

Indeed, but they feel our pain.

[martscan]

Joel:

For openers, you have no idea what my situation is, vis-a-vis investment profits or losses, and your pedantics notwithstanding, my business experience tells me it can be a grave error to presume what is in someone's mind. Frankly, when it comes to my money, it IS all about me...and I doubt very much that a 'God' spends much time, if any, caring about my finances. I certainly don't spend much time, if any, considering my position relative to others less fortunate...or conversely, better off, than I am. When it comes to charity, with the exception of a memorial scholarship which I fund, I prefer to make my contributions anonymously. However, I may renege on this policy...and send you a horn.

[Joel]

Well thanks for the offer martscan but I wouldn't want to take anything away from what's "all about (you)". But you did prove the point of my initial posting.

And to Mr. Petruno...As we approach the end of the year, I'd like to send a big "Thank You" for the work you've done over the past year. I know it's been a difficult year for you folks at the Times but I've come to truly enjoy, appreciate and rely on your columns to give me information and, sometimes, some sorely needed perspective. Happy New Year to you and Peace to all!

[martscan]

Some people just don't get it, perspective I mean.

[Nick]

Man, everyone knew the stock market took some big hits lately, but those numbers really put things into perspective. Those are some huge corporations that are down 95%+.