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

3 months 2 weeks 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
CALIFORNIA - A high-speed car chase ended Sunday when the suspect slid into a ditch, according to a press release... More >>
1 day ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 2:30:00 PM CDT May 25, 2018 in News
JEFFERSON CITY- It's no secret more cars will out for Memorial Day weekend, but many drivers are taking precautions before... More >>
1 day ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 2:16:00 PM CDT May 25, 2018 in News
JEFFERSON CITY - More than five hundred Missourians have lost their hunting, fishing and trapping licenses after a Department of... More >>
1 day ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 1:48:00 PM CDT May 25, 2018 in News
HARRISONVILLE (AP) — Authorities say a 12-year-old western Missouri boy fought off an attempted abduction by hitting the... More >>
1 day ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 8:53:00 AM CDT May 25, 2018 in News
COLUMBIA - Missouri State Highway Patrol is investigating an early morning crash on I-70 Westbound. It caused major backups... More >>
1 day ago Friday, May 25 2018 May 25, 2018 Friday, May 25, 2018 8:47:00 AM CDT May 25, 2018 in News
COLUMBIA - On Thursday, the Columbia Airport Advisory Board announced the TSA approved a security screening lane to open by... More >>
1 day ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 11:41:00 PM CDT May 24, 2018 in News
COLUMBIA- May is known for Mother’s day, Memorial Day and in Missouri, the start of tick season. “May, June... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 8:21:00 PM CDT May 24, 2018 in News
COLUMBIA – The Columbia City Council discussed a recent engineering study today centering on increasing traffic flow east of Columbia.... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 7:11:00 PM CDT May 24, 2018 in News
LAKE OZARK - The Missouri State Highway Patrol is encouraging people to practice safe boating ahead of Memorial Day weekend.... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 6:55:00 PM CDT May 24, 2018 in News
HOLTS SUMMIT - After two months without a police department, New Bloomfield finally has one thanks to the city of... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 5:50:00 PM CDT May 24, 2018 in News
COLUMBIA - The University of Missouri has agreed to pay $50,000 to settle a lawsuit filed after Athletic Director Jim... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 4:54:00 PM CDT May 24, 2018 in Sports
MONROE CITY - Some people diagnosed with Parkinson’s Disease fight back, as did Michael Crager, the founder of Rock Steady... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 4:18:00 PM CDT May 24, 2018 in News
JEFFERSON CITY – The U.S. Department of Health and Senior Services made changes to a family planning program, which the... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 3:56:00 PM CDT May 24, 2018 in News
JEFFERSON CITY - In sometimes heated testimony, members of a Special House Investigative Committee looking into the Eric Greitens... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 3:54:00 PM CDT May 24, 2018 in News
JEFFERSON CITY - A report on a statewide rape kit audit shows that there are at least 4,889 untested sexual... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 3:23:00 PM CDT May 24, 2018 in News
JEFFERSON CITY - With the holiday weekend approaching, Mothers Against Drunk Driving (MADD) and Save Our Air Medical Resources (SOAR)... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 1:28:00 PM CDT May 24, 2018 in News
COLUMBIA – More than 36 million drivers will hit the road during Memorial Day Weekend, according to AAA. Just... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 12:20:00 PM CDT May 24, 2018 in News
JEFFERSON CITY - A statewide program bringing together prisoners and puppies is celebrating a major milestone. A four-month-old redbone... More >>
2 days ago Thursday, May 24 2018 May 24, 2018 Thursday, May 24, 2018 10:15:00 AM CDT May 24, 2018 in News
Columbia, MO
Broken Clouds 80°
9pm 81°
10pm 79°
11pm 75°
12am 75°