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

3 months 1 week 6 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
SPRINGFIELD (AP) — Springfield-area authorities are looking for an 8-year-old girl who disappeared from a Springfield apartment complex. ... More >>
29 minutes ago Tuesday, May 22 2018 May 22, 2018 Tuesday, May 22, 2018 8:36:00 AM CDT May 22, 2018 in News
COLUMBIA - In the wake of the deadly Santa Fe High School shooting , the MU Police Department will be... More >>
1 hour ago Tuesday, May 22 2018 May 22, 2018 Tuesday, May 22, 2018 7:43:00 AM CDT May 22, 2018 in News
BRUSSELS (AP) — Facebook CEO Mark Zuckerberg faces senior European Union lawmakers later Tuesday to answer questions about a... More >>
3 hours ago Tuesday, May 22 2018 May 22, 2018 Tuesday, May 22, 2018 5:22:00 AM CDT May 22, 2018 in News
COLUMBIA - The Columbia Police Department said it found a missing teen around 1 a.m. Tuesday. Authorities said Brice... More >>
4 hours ago Tuesday, May 22 2018 May 22, 2018 Tuesday, May 22, 2018 4:41:00 AM CDT May 22, 2018 in News
COLUMBIA - Columbia residents will have a chance to learn about - and talk about - climate change Tuesday night.... More >>
6 hours ago Tuesday, May 22 2018 May 22, 2018 Tuesday, May 22, 2018 3:00:00 AM CDT May 22, 2018 in News
COLUMBIA - An on-going rift between two east campus communities has come to a breaking point. Non-resident property owners want... More >>
13 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 7:29:00 PM CDT May 21, 2018 in Top Stories
KANSAS CITY (AP) — A Kansas City man who told authorities he was hearing "voices" when he wounded two... More >>
13 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 7:07:41 PM CDT May 21, 2018 in News
COLUMBIA - More than 670 motorcycles poured into the Phillips 66 gas station off I-70 as the "Run for the... More >>
15 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 6:05:00 PM CDT May 21, 2018 in News
JEFFERSON CITY - A new fire station is in store for east Jefferson City, and the city council will review... More >>
15 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 5:10:00 PM CDT May 21, 2018 in News
ST. LOUIS – The St. Louis Circuit Attorney's Office announced late Monday that a special prosecutor has been selected in... More >>
16 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 5:00:00 PM CDT May 21, 2018 in News
COLUMBIA - Checking the phone constantly, surfing Facebook first thing in the morning or right before bed, playing games like... More >>
17 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 3:58:00 PM CDT May 21, 2018 in News
COLUMBIA – The UM Board of Curators voted Monday to increase tuition by up to 2.1 percent for the 2018-2019... More >>
17 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 3:44:00 PM CDT May 21, 2018 in News
COLUMBIA – Students will leave class early on Tuesday as the 2017-2018 Academic Year comes to a close. The... More >>
17 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 3:28:00 PM CDT May 21, 2018 in News
CAMDEN COUNTY - The Missouri State Highway Patrol is investigating a boating crash that left three dead and two injured... More >>
17 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 3:20:00 PM CDT May 21, 2018 in News
JEFFERSON CITY - Missouri has never impeached a governor, but that could change in 2018. Tuesday, the House of Representatives... More >>
19 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 2:04:00 PM CDT May 21, 2018 in News
COLUMBIA -Utility workers began surveying land on Clark Lane for a sidewalk project designed to improve community safety. "The... More >>
19 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 1:40:00 PM CDT May 21, 2018 in News
JEFFERSON CITY (AP) — A House investigatory committee has expanded its membership for a special session to determine whether... More >>
21 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 12:00:47 PM CDT May 21, 2018 in News
ROLLA (AP) — A Missouri University of Science and Technology student has been sentenced to seven years in prison... More >>
21 hours ago Monday, May 21 2018 May 21, 2018 Monday, May 21, 2018 11:40:00 AM CDT May 21, 2018 in News
Columbia, MO
Broken Clouds 70°
9am 70°
10am 74°
11am 76°
12pm 79°