Facebook: What does the stock market drop mean to you?
Wed, 10 Aug 2011 03:00:00 GMT —
Since 2008 financial professionals have been predicting a double dip recession.Monday's 635 point loss on the Dow was the biggest indicator yet that the economy isn't as strong as the White House says it is.The meltdown was the Dow's sixth biggest drop in the last 112 years, and the worst since the fall of 2008. So, should you park your money somewhere safe, or ride out the market? Central Trust Vice President, Jill Dobbs said, "If you're in the market now, we hate to see people panic and sell and lose money". Treasury notes are a common place to safely store assets, but with the debt downgrade, you'll only make two and a quarter percent on a ten year note. Dobbs said there are other options, Fixed income investments that rise with interest rates like floating rate notes, treasury inflation protected securities". Commodities like oil have been another favorite for investors, but with the weaker global economy, fears over less demand drove prices down to around 81 dollars per barrel, its lowest price of the year. But there are a few bright spots in the market place.Gold set a new record, it was up more than $61 on Monday and up another $26 Tuesday to around $1,700 per ounce. Dobbs said, "We feel fundamentally, the stock market is still a good place to be, corporations have a lot of cash, and corporate profits have done really well". Dobbs said corporations are in much better shape than they were in 2008, and she expects profits to remain strong through the end of the year. Original Story: The Dow dropped more than 600 points on Monday.What does this mean for you?Should you sit tight and keep your investments where they are, or pull them out and put them somewhere safe?We'll talk to a local financial planner to get advice on how you should ride out this financial storm.