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The Chairman of the Federal Reserve went before Congress warning the economy's slow growth will continue. And inflation was on the agenda as wholesale prices climb at a rate not seen in 27 years.
We all are affected in our own way. One woman KSL spoke with today says she's not only selling her RV because it's a gas guzzler, she's also selling her home. Her family is trying to downsize and ride out the economic storm.
Others we spoke with are simply trying to cut back and plan heavily for the future. That's something experts say is key in riding out a market that tends to be cyclical.
Fun comes at a price, though. And at 6 miles to a gallon, fill ups run about $450 and don't get far. Millington isn't unlike many Utahns who are being financially cautious in what seems to be a cautionary market. "It's hard to think about the future. You don't even want to think about it because sometimes it's so baffling," she said.
Stan Nelson, with Edward Jones Investments, says the media is giving a dire prediction. "It's almost as if everything's going to explode," he said.
He says it's reflected in some of his clients' calls. They're telling him, "I want to get out of everything. I want to sell everything." Nelson says that is the wrong approach. "Remember, you're not actually going to lose anything unless you sell it now. And sell it at a loss," he said.
Nelson predicts the market will rebound, inflation will remain under control and gas prices will come down.
And though Millington is selling her Winnebago and being careful about clipping coupons, she's heeding that advice. She's not pulling her money out of the stock market. Instead, she's cautiously optimistic. "You kind of cross your fingers and hope," she said.
Time and time again, experts have advised we diversify. Don't put all your money in stocks, bonds, CD's, or whatever the case may be. Break it up a little and that will insulate you from the sometimes unpredictability of the market.
E-mail: lprichard@ksl.com
