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

6 months 1 week 3 days 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
BOONVILLE – About 100 people rode their bikes early Saturday to help raise funds for the 43rd annual Missouri River... More >>
4 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 2:23:00 PM CDT August 18, 2018 in News
PLATTE CITY, Mo. (AP) — Sheriff's deputies in northwestern Missouri's Platte County say they've seized more than 200 pounds of... More >>
4 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:48:56 PM CDT August 18, 2018 in News
BLACK JACK (AP) — A baby bobcat found in eastern Missouri and being nursed back to health might be mistaken... More >>
4 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:42:55 PM CDT August 18, 2018 in News
ST. LOUIS (AP) — Funding cuts to in-home care for the disabled could force some Missouri residents into nursing homes,... More >>
5 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:34:39 PM CDT August 18, 2018 in News
MILLER COUNTY - Miller County Sheriff Louie Gregoire said two people suffered gunshot wounds Friday night. Gregoire said the suspect... More >>
5 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:23:00 PM CDT August 18, 2018 in News
COLUMBIA - The North America Diving Dogs dock diving competition was in its second of three days Saturday at the... More >>
5 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 1:01:00 PM CDT August 18, 2018 in News
COLUMBIA - The Columbia Police Department is investigating an attempted burglary of an off-campus sorority house near MU. In... More >>
7 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 11:01:00 AM CDT August 18, 2018 in News
MOBERLY - The Moberly Police Department is currently investigating an armed robbery of Break Time North, 1210 East US 24.... More >>
8 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 10:18:00 AM CDT August 18, 2018 in News
(CNN) -- New court documents filed in the case of a Colorado man suspected of killing his pregnant wife and... More >>
18 hours ago Saturday, August 18 2018 Aug 18, 2018 Saturday, August 18, 2018 12:09:31 AM CDT August 18, 2018 in News
WASHINGTON (AP) — It's not just audiotapes. Omarosa Manigault Newman has a stash of video, emails, text messages and... More >>
19 hours ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 10:57:37 PM CDT August 17, 2018 in News
WASHINGTON (AP) — U.S. health officials on Thursday approved a new generic version of EpiPen, the emergency allergy medication that... More >>
22 hours ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 8:10:26 PM CDT August 17, 2018 in News
(CNN) -- The bomb used by the Saudi-led coalition in a devastating attack on a school bus in Yemen was... More >>
22 hours ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 7:41:13 PM CDT August 17, 2018 in News
(CNN) -- A judge has ordered a mental evaluation for the man accused of starting the Holy Fire that has... More >>
23 hours ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 7:14:03 PM CDT August 17, 2018 in News
JEFFERSON CITY (AP) — An ethics panel says there's reason to believe that former Missouri Gov. Eric Greitens broke the... More >>
1 day ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 5:43:44 PM CDT August 17, 2018 in News
JEFFERSON CITY - A community Facebook post on a Jefferson City page said a student got dropped off at the... More >>
1 day ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 5:22:00 PM CDT August 17, 2018 in News
BRANSON (AP) — A former employee of a southwestern Missouri paddlewheel tourist boat alleges in a lawsuit that he suffered... More >>
1 day ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 4:36:01 PM CDT August 17, 2018 in News
LINN- Forbes Magazine named State Technical College of Missouri as the third best two-year trade school in the country. ... More >>
1 day ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 3:44:00 PM CDT August 17, 2018 in News
COLUMBIA (AP) — The Islamic Center of Central Missouri in Columbia is finally moving forward with an expansion project after... More >>
1 day ago Friday, August 17 2018 Aug 17, 2018 Friday, August 17, 2018 2:37:00 PM CDT August 17, 2018 in Top Stories
Columbia, MO
Broken Clouds 85°
7pm 84°
8pm 83°
9pm 79°
10pm 77°