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Recent Stock market plunge isn't as bad as it seems

The Stock Market was relatively stable Friday, as investors recovered from the jolt caused by Fed chairman Ben Bernanke's announcement Wednesday that the stimulus effort's days are numbered.

Don Jackson, with UBS Financial Services, says investor’s knee jerk reaction may have been overblown.

He says, “As I write this e-mail, the S&P 500 is up 12.5% for the year to date and 19.83% over the last 12 months. By my calculations, the S&P 500 has dropped only 4.68% since its high closing trade last month.”

Over the past two days, the Dow plunged 560 points after the Federal Reserve said it could wind down its bond-buying program by the middle of next year.

Jackson says, “Drops like this are normal, natural, and very common.”

He says jumping in and out of the markets may sound like a good idea, but putting that idea into practice tends to hurt a lot more than it helps.

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