Experts say plunging DOW will have little effect, but stay alert

1 week 6 days 22 hours ago Tuesday, February 06 2018 Feb 6, 2018 Tuesday, February 06, 2018 3:16:00 PM CST February 06, 2018 in News
By: Chelsea Haynes, KOMU 8 Reporter
loading

COLUMBIA - Local experts say there’s no need to worry just yet, regarding Monday’s Dow plunge.

"We’ve weathered worse storms,” said Joe Haslag, professor of economics at the University of Missouri.“I don’t want to discount the fact that people lost wealth yesterday,” Haslag said, but “people understand the stock market can be volatile on a day to day basis.”

Brad Miller, Branch Manager and First Vice President of Investments at Stifel, Inc., said spikes like the ones seen in Monday's market can be violent, yet Miller encourages local investors to simply stay calm, when the market gets rough.

“We try to tell people not to lose sight of their long term goals,” said Miller.

CNN Money reporter David Goldman, chronicled four major reasons as to why the stock market took a 4.6% plunge on Monday, making it the biggest percentage drop since 2011, during the European debt crisis.

Goldman said the following four reasons are why U.S. stocks took a nosedive on Monday:

  1. Fear the Feds will increase interest rates

  2. Increasing the cost of borrowing money 

  3. Low bond yields

  4. Unhealthy stock increases

One thing all three of these men can agree with is the market analysts, who according to CNN Money, said the market due for a slight drop.

Miller said one of his Chief Investment Advisors, said the market was coming up on 120 years without a 5% pull back, making it the longest time ever to have seen little change in the market.

“We have had a tremendous longevity in this bull market without much of a pull back,” Miller said. “We were due for a one [a market decline].

Although the stock market took a hit on Monday, Miller encourages clients to purchase stocks when the market drops to further their long-term investments, such college and retirements funds like the 401K and the 403B.

“I always try to tell people to have a little extra money on the sidelines,” Miller said.

“When it [the market] dips, don’t go crazy, but buy a little something on the dip. That way when the market heads back up, you’ve actually taken advantage of situations like this.”

Professor Haslag, former researcher for the Dallas Federal Reserve, said sometimes there's really no direct answer for spirals like the one Wall Street saw on Monday. 

"Sometimes we just hit those tipping points, and if I tip, then maybe the guy next to me tips, then the machine next to him tips, and then we're almost 1200 points down." 

For a deeper look into how the stocks bounced back on Tuesday, after the dramatic plunge on Monday, take a look into CNN Money's most recent article for Tuesday. 

More News

Grid
List
JEFFERSON CITY (AP) — One rural Missouri county is moving to a privatized system for public defenders, a system that... More >>
4 hours ago Tuesday, February 20 2018 Feb 20, 2018 Tuesday, February 20, 2018 9:00:00 AM CST February 20, 2018 in News
COLUMBIA – The “Me Too” movement may seem to be a recent phenomenon, but the creator, Tarana Burke, has dedicated... More >>
5 hours ago Tuesday, February 20 2018 Feb 20, 2018 Tuesday, February 20, 2018 8:01:00 AM CST February 20, 2018 in News
COLUMBIA - Columbia's city council approved a resolution Monday night in support of a citywide community-oriented policing program. This... More >>
13 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 11:43:00 PM CST February 19, 2018 in Continuous News
JEFFERSON CITY – Missouri students may have access to programs for gifted children if a bill passes. A hearing was... More >>
15 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 9:47:00 PM CST February 19, 2018 in News
COLUMBIA - Columbia's waste management department presented its plans for an expansion to the city's privately owned landfill Monday evening... More >>
17 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 7:35:00 PM CST February 19, 2018 in News
COLUMBIA - Are you confused by the concept of crypto-currencies? Does Bitcoin baffle you? KOMU's Angie Bailey tries to answer... More >>
18 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 7:26:00 PM CST February 19, 2018 in News
JEFFERSON CITY (AP) — The Missouri House has passed a bill to ban marriages of children under 15 years... More >>
18 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 6:54:30 PM CST February 19, 2018 in News
JEFFERSON CITY - Legislators across Missouri are taking action to combat drug addiction and related illnesses this session, despite the... More >>
20 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 5:10:00 PM CST February 19, 2018 in Continuous News
JEFFERSON CITY – A House committee approved a bill to allow people with prior convictions to work in places that... More >>
22 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 3:16:00 PM CST February 19, 2018 in News
COLUMBIA - The Columbia City Council is expected to adopt a resolution declaring its support for community-oriented policing at its... More >>
23 hours ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 1:38:00 PM CST February 19, 2018 in News
REPUBLIC (AP) — Police have arrested a 13-year-old Missouri boy accused of threatening to shoot up a school with... More >>
1 day ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 12:42:00 PM CST February 19, 2018 in News
POPLAR BLUFF (AP) — A man has been acquitted in the fatal shooting of his former brother-in-law on the... More >>
1 day ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 11:34:18 AM CST February 19, 2018 in News
KANSAS CITY (AP) — A lawsuit filed last week alleges a Kansas City school allowed a violent felon to... More >>
1 day ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 9:22:00 AM CST February 19, 2018 in News
LEAWOOD, Kan. (AP) — Authorities say two children have died and three other people are critically injured in... More >>
1 day ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 7:28:00 AM CST February 19, 2018 in News
BOONE COUNTY - February is national wedding month. According to the National Association of Bridal Consultants , most couples begin... More >>
1 day ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 7:14:00 AM CST February 19, 2018 in News
COLUMBIA - A $2.7 million project to the Columbia sewage system will be introduced to city council Monday night. ... More >>
1 day ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 7:08:00 AM CST February 19, 2018 in News
ODESSA (AP) — An 80-year-old Missouri man who was convicted of abusing two young girls faces a possible... More >>
1 day ago Monday, February 19 2018 Feb 19, 2018 Monday, February 19, 2018 6:47:00 AM CST February 19, 2018 in News
BOONE COUNTY - A 10-acre fire threatened several homes just outside of Columbia Sunday. The fire was near the... More >>
1 day ago Sunday, February 18 2018 Feb 18, 2018 Sunday, February 18, 2018 9:04:00 PM CST February 18, 2018 in News
Columbia, MO
Broken Clouds 38°
2pm 35°
3pm 34°
4pm 33°
5pm 32°

Select a station to view its upcoming schedule:

Coming Up Next

1:00p
Days of Our Lives
2:00p
2018 Olympic Winter Games
4:00p
Jeopardy!
1:00p
Maury
2:00p
Maury
3:00p
The Robert Irvine Show

Tonight's Schedule

7:00p
2018 Olympic Winter Games
7:00p
The Flash
8:00p
Black Lightning
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld