A wild ride on Wall Street Monday. Fears are growing about our economy, despite the 700 billion dollar rescue plan, signed into law Friday.
The dow recovered to a loss of 370, after plummeting more than 800 points earlier in the day. Concern is also mounting that the financial crisis has spread globally.
President Bush and other leaders are warning that it will take awhile for the financial rescue plan to work, but our economy will be quote fine in the long run.
Locally, financial experts are also counseling us to keep calm.
The phones are ringing at Savant Capital Management in Rockford, as worried investors call for advice.
Advisors tell us young investors have no reason to panic. Their portfolios will bounce back with time. Those nearing retirement may need to consider retiring later and continuing to save and those in retirement need to cut back on lifestyle expenses.
But whatever we do, experts say selling off all our stocks now will only hurt more, because there's no telling when the market will bounce back.
"They get a double wammy, they've taken it on the downside, taken this big hit, they've stepped out, they've taken their losses and know they're going to miss it on the upside because nobody can time the market and that's one of the philosophies here," says Amy Barrett, Savant's Director of Investment Research.
Barrett says the main impact of Monday's drops is psychological. She describes success in the stock market as the survival of the bravest and says those who stick it out will be rewarded with returns.