|
Posted: 10:43 PM Oct 6, 2008
Rockford Financial Experts Counsel Calm
On Wall Street's worst day in years, financial experts tell investors not to panic.
Reporter: Alice Barr |
|
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.
Latest Comments
Questions for your panel: Hearing there's 60 trillion dollars out in subprime loans, repackaged, and sold as investments, we've got more failures coming. That many subprime mortgages defaulting makes me think $700 billion is like plugging a leak with gum. With Australia slashing their interest rates, are more Europeans going to do the same? How will that impact us and is it a good move? Do you think eventually there will be 1 global currency. Also, with Carter starting this "socialized housing" debacle, Clinton continuing the practice and Bush not wise and Republicans unable to stop the practice legislatively, shouldn't Obama be held more responsible than McCain, as McCain tried to sound the alarm? Should Fannie/Freddie execs be arrested, cooking the books and inflating their stock price, knowing full well failure was ahead? What will Obama's trillion dollar spending spree going to do to the economy? Has anyone ever seen Obama eat pork, i.e., a pork chop? Closet Muslim?


