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

3 months 2 weeks 23 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
NEW YORK (AP) — A federal judge ruled Wednesday that President Donald Trump is violating the First Amendment when he... More >>
4 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 7:10:00 PM CDT May 23, 2018 in Continuous News
ST. LOUIS (AP) — A federal district court in St. Louis has ruled that the Missouri prison system must... More >>
5 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 5:48:22 PM CDT May 23, 2018 in News
MID-MISSOURI - If you look at the forecast you can easily tell that summer is here early. Don't forget that... More >>
5 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 5:43:00 PM CDT May 23, 2018 in Weather
(CNN) - NFL players must stand during the National Anthem this season, team owners decided Wednesday, a reaction to fierce... More >>
6 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 5:36:38 PM CDT May 23, 2018 in News
COLE COUNTY - Cole County deputies say a man accused of having pipe bombs was cooperative when they asked to... More >>
7 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 3:54:00 PM CDT May 23, 2018 in News
HALLSVILLE - The NRA Bianchi Cup happens every year in Missouri, however this year, embattled Gov. Eric Greitens made an... More >>
7 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 3:40:00 PM CDT May 23, 2018 in News
COLUMBIA - The Columbia Police Department wants feedback from residents on its community policing initiative. A meeting Wednesday gave people... More >>
8 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 3:25:00 PM CDT May 23, 2018 in News
JEFFERSON CITY - The House Special Investigative Committee continued reading the transcript of the testimony of the woman involved in... More >>
8 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 3:12:00 PM CDT May 23, 2018 in News
JEFFERSON CITY- A revision to Missouri's amateur sports tax credit program could bring more sporting events to Mid-Missouri. The... More >>
8 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 3:04:00 PM CDT May 23, 2018 in News
CALIFORNIA - The Moniteau County prosecutor filed criminal charges against the former California police chief Wednesday. Former police chief... More >>
9 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 2:15:00 PM CDT May 23, 2018 in News
JEFFERSON CITY (AP) - A top official at Missouri's Department of Public Safety had a potential conflict of interest when... More >>
9 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 2:11:00 PM CDT May 23, 2018 in News
LAKE OZARK- Businesses in mid-Missouri face a steep choice when it comes to having live entertainment -- lose the music... More >>
9 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 1:53:00 PM CDT May 23, 2018 in News
JEFFERSON CITY (AP) - A Missouri judge is weighing whether a secretive nonprofit group that supports Gov. Eric Greitens' agenda... More >>
10 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 1:08:00 PM CDT May 23, 2018 in News
COLE COUNTY - The Cole County Prosecutor's Office filed charges Wednesday against a man suspected of having pipe bombs and... More >>
13 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 10:30:00 AM CDT May 23, 2018 in News
JEFFERSON CITY (AP) - Missouri Lt. Gov. Mike Parson says he will be ready to step up if Gov. Eric... More >>
13 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 9:48:00 AM CDT May 23, 2018 in News
COLUMBIA- The city of Columbia will hold the first of seven community policing meetings Wednesday evening. Each meeting is set... More >>
16 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 7:34:00 AM CDT May 23, 2018 in News
BOLIVAR (AP) — The Missouri State Highway Patrol says an 87-year-old man died after a small plane he was piloting... More >>
16 hours ago Wednesday, May 23 2018 May 23, 2018 Wednesday, May 23, 2018 6:39:00 AM CDT May 23, 2018 in News
JEFFERSON CITY (AP) - Missouri Gov. Eric Greitens was pulled over Friday while speeding. Spokesman Parker Briden in a... More >>
1 day ago Tuesday, May 22 2018 May 22, 2018 Tuesday, May 22, 2018 6:21:00 PM CDT May 22, 2018 in News
Columbia, MO
Broken Clouds 72°
12am 73°
1am 73°
2am 71°
3am 70°