MW 'It's been a scary ride': My family has $800,000 in stocks. We lost 2 years of market gains in a few weeks. Do we sell - or buy?

By Quentin Fottrell

'I still believe equities will offer better long-term returns compared to their current real-estate rental income'

Dear Quentin,

I'm a male 33-year-old living in Athens, Greece, seeking advice regarding my family's financial strategy. My mother, 68, and my uncle, 76, who is currently in poor health, jointly own several real-estate properties across Athens and a few other regions, collectively worth around $4 million. The main asset is a three-story building in southern Athens - my mother's residence - which constitutes about two-thirds of their total real-estate value.

They generate some income from renting the remaining properties, but returns have been consistently low compared to historical stock-market performance. Additionally, they have approximately $800,000 invested in equities through a family friend who manages their investments from Switzerland. It's been a scary ride. Recent aggressive investment choices, coupled with the market downturn, erased about two years' worth of gains within two weeks.

'I'm considering encouraging my family to liquidate part of their real-estate holdings to further invest in equities.'

Nevertheless, I still believe equities will offer better long-term returns compared to their current real-estate rental income. There's also roughly $200,000 sitting idle in the bank. I personally earn close to the national average salary and can't envision reaching similar financial comfort through my current career trajectory. I'm considering encouraging my family to liquidate part of their real-estate holdings to further invest in equities.

Would you recommend this approach, or do you suggest another strategy for diversifying their portfolio more effectively? Do we sell or buy more stocks?

A Longtime Reader

Related: 'Is it finally time to freak out?' I'm in my 50s and worried about the $650K in my 401(k).

Dear Reader,

What's good for the geese (your mother and uncle) is not necessarily good for the gander (everyone else in the family).

Your age profiles are different. Your mother is 68 and your uncle is 76. You, however, are the age of Christ, 33, so you have another three decades or more before you finally retire. Your mother and uncle are fortunate and comfortable, but I don't recommend selling rental properties to invest the proceeds in equities.

You can make that decision when they're gone, and you and your siblings and/or cousins, if you have them, decide what to do with your inheritance. At this age, they should be taking less risk, not wading further into a volatile stock market. If this was your $5 million investment fund, I would be giving you different advice.

There's talk of a recession and the Nasdaq COMP moved into correction territory on Wednesday, so you're doubling down in a tumultuous market at a time when your mother and uncle should have less stress in their life, and more certainty. This is their time to exhale and enjoy this next chapter, sell a house or two, and live off the proceeds.

A correction, in market terms, is a fall of 10% from a recent peak, and a recession is two quarters of negative growth in the economy. Add to that the chasm opening up between the traditional Western alliance and the U.S. in foreign policy and the threat of an expanding trade war with China, Mexico and Canada, and you have a recipe for uncertainty.

At this age, they should be taking less risk, not wading further into a volatile stock market.

"Uncertainty is the driver around the market's recent selloff," says Rob Haworth, senior investment strategy director for U.S. Bank Asset Management. The most recent market rout can be traced to President Trump's refusal to comment, in a Fox News interview last Sunday, on whether his trade war would trigger a recession. It left investors with a big question mark.

He notes that communication-services, information-technology and consumer-discretionary stocks are showing signs of weakness, all of which point to people pulling back on expenses amid recession fears. Adding insult to injury, these sectors fueled the stock-market rallies in 2023 and 2025, he added, which led the S&P 500 SPX to yield returns of over 25% each year.

Haworth says corporate earnings are the next port of call for "clues" about what's ahead. "The market at this point is left to evaluate what multiple they should put on stocks and assess earnings expectations," he adds. Wall Street analysts expect corporate earnings for the S&P 500 to grow at an aggregate pace of roughly 12% to 14%, depending on the source.

Greece remains a popular holiday destination and place to live for retirees. The housing market in Greece, which was valued at $1.28 trillion in 2024, is projected to reach $1.56 trillion by 2029, according to predictions by Benoit Properties International. After a heady postpandemic boom, residential real estate is expected to rise 3% a year through 2029.

"Demand for new homes is projected to reach 35,000 units per year, but building permits will limit new construction to 30,000 units annually," it adds. "Greece's appeal as a second-home destination is on the rise. Its year-round Mediterranean climate and popular Golden Visa program have attracted foreign nationals seeking vacation homes or permanent residency."

Two-thirds of your mother's property is locked up in the building where she lives; it further dilutes her diversification.

While predictions for the real-estate market in Greece, as in the U.S., remains relatively stable, millions of people will never take brick-and-mortar investments quite for granted again after the 2008 subprime property crash. Two-thirds of your mother's real-estate is locked up in the building where she lives; if it's a single-occupancy residence, it further dilutes her diversification.

You, at 33, can afford to make more aggressive investment choices, but you are also doing so, possibly, at the end of a remarkable bull run for tech stocks. Whatever happens to equities or the current administration's tariff policy and geopolitical maneuvers over the next four years of the Trump administration, you can afford to enjoy the rollercoaster.

But do your mom and uncle a favor, and leave them out of it. I'm glad that you have $200,000 in the bank, but you could also think about keeping at least six months' expenses as an emergency fund, while investing the rest in relatively liquid high-interest savings accounts and/or CDs, which are still giving rates of 4% or more, depending on the account.

Given your mother and uncle's wealth, I'm assuming that they have a public and private pension, and income to live on. I'm also cognizant that, like many European Union countries, Greece has a National Health System to provide free public healthcare, a system of both public and private healthcare providers. Given your letter, they're in a good place.

Ultimately, they're fortunate that you have their backs.

Related: 'This money has been a life changer' - a woman living on the poverty line inherited $150K and shares her financial plan

More columns from Quentin Fottrell:

My parents left me $250K, but gave my 'irrational and neurotic' sister $1 million. Would you sever all ties?

My stepmother inherited 100% of my father's estate. She's leaving everything to her two kids. Is that fair?

I invested $4,000 in 2020. It's now worth $55,000 with a 65% concentration in Nvidia. Am I now in trouble?

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com, and follow Quentin Fottrell on X, the platform formerly known as Twitter.

The Moneyist regrets he cannot respond to letters individually.Check out The Moneyist's private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.

By emailing your questions to The Moneyist or posting your dilemmas on The Moneyist Facebook group, you agree to have them published anonymously on MarketWatch.

By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

-Quentin Fottrell

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

March 13, 2025 05:15 ET (09:15 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.