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

8 months 2 weeks 15 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
COLUMBIA - Three air conditioning units were stolen from Discovery Church in Northeast Columbia Tuesday night. The pastor of the... More >>
1 hour ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 6:01:00 PM CDT October 22, 2018 in News
JEFFERSON CITY - Governor Parson appointed the new director of the Missouri Medicaid program, filling a permanent position after 22... More >>
2 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 5:40:00 PM CDT October 22, 2018 in News
COLUMBIA - Renee Hoagenson and Vicky Hartzler are running against each other for a seat in the House of Representatives.... More >>
2 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 5:28:00 PM CDT October 22, 2018 in News
COLUMBIA - A poster display regarding sexual orientation and gender identity at Gentry Middle School received mixed reviews from parents... More >>
3 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 4:06:00 PM CDT October 22, 2018 in News
COLUMBIA - Mizzou forward Jontay Porter will miss the entire 2018-19 basketball season after tearing both the ACL and MCL... More >>
4 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 3:40:00 PM CDT October 22, 2018 in News
COLUMBIA - A downtown Columbia restaurant discontinued an Election Day incentive after realizing it could be violating voter laws. ... More >>
5 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 2:39:00 PM CDT October 22, 2018 in News
O'FALLON (AP) — A suburban St. Louis man who has served as a Cub Scout den leader has been charged... More >>
5 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 2:32:00 PM CDT October 22, 2018 in News
(CNN) - The United Nations' drug strategy of the past 10 years has been a failure, according to a major... More >>
5 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 2:17:00 PM CDT October 22, 2018 in News
COLUMBIA - Prosecutors filed charges Monday against the driver of a car which crashed late Saturday, killing one person. ... More >>
6 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 12:49:00 PM CDT October 22, 2018 in News
KANSAS CITY (AP) — The Missouri Republican Party says a miscommunication caused 10,000 voters in the state to receive mailers... More >>
9 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 10:31:00 AM CDT October 22, 2018 in News
JEFFERSON CITY (AP) — The Missouri Supreme Court has allowed an injunction to remain in place against part of... More >>
10 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 9:44:00 AM CDT October 22, 2018 in News
KANSAS CITY (AP) — Police say one person died and three people were injured when an off-duty Kansas City police... More >>
12 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 7:48:00 AM CDT October 22, 2018 in News
COLUMBIA (AP) — Three black trailblazers at the University of Missouri have been honored on the Columbia campus. The... More >>
12 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 7:36:12 AM CDT October 22, 2018 in News
COLUMBIA -The next Mega Millions drawing will take place the night of Oct. 23 at 10 p.m. central time. ... More >>
15 hours ago Monday, October 22 2018 Oct 22, 2018 Monday, October 22, 2018 3:57:00 AM CDT October 22, 2018 in News
COLUMBIA - The University of Missouri's 107th Homecoming has come and gone, but left behind a lot of clean up.... More >>
21 hours ago Sunday, October 21 2018 Oct 21, 2018 Sunday, October 21, 2018 10:34:00 PM CDT October 21, 2018 in News
HERMANN - Neighbors in the town of Hermann, Missouri are still grieving after a fatal accident involving a trolley killed... More >>
21 hours ago Sunday, October 21 2018 Oct 21, 2018 Sunday, October 21, 2018 10:01:00 PM CDT October 21, 2018 in News
COLUMBIA - The Missouri men’s basketball program suffered a crushing blow Sunday night when it was announced that sophomore power... More >>
1 day ago Sunday, October 21 2018 Oct 21, 2018 Sunday, October 21, 2018 7:34:00 PM CDT October 21, 2018 in Sports
(CNN) - President Donald Trump announced Saturday that the US is pulling out of the landmark Intermediate-Range Nuclear Forces Treaty... More >>
1 day ago Sunday, October 21 2018 Oct 21, 2018 Sunday, October 21, 2018 4:20:00 PM CDT October 21, 2018 in News
Columbia, MO
Broken Clouds 64°
8pm 60°
9pm 58°
10pm 54°
11pm 53°