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Investors around the world have been selling off stocks as they come to realize that financial systems in the United States and other countries need more than government bailouts to fix them.
Despair about a weakening global economy is sweeping across Wall Street. It propelled the Dow Jones industrials down more than 800 points this afternoon, before stocks gained back some of that ground in late trading.
The bailout may not have restored confidence, but financial institutions here in Utah are doing their best to ease minds.
Local financial institutions are trying to get the word out that while the economy might be unstable now, there's also a lot of opportunity.
One person we spoke with, Derek Anderson, said, "I do have money in the stock market; I am worried about it."
Here's a glimpse into the anxious minds of Utahns with money in the market.
Rachel McPhail told KSL, "Right now, I'm just not looking at it, that way I don't know. Sometimes ignorance is bliss."
The uncertainty is still there, even after the government's $700 billion bailout.
John Redd, a financial adviser with Edward Jones, says, "They're getting this news every day of the things going on the Hill and in the market, and they're really not sure what to do to process that. So the call is, or the question is: Should I be concerned, or how does this affect me?"
Redd says they are trying to stay in front of the problem by letting clients know that panic is never a good investment strategy.
Other institutions are doing the same thing. They are reinforcing the message that the institution has established a good, long-term investment strategy. "When companies do send that out and say here's our situation, I think more than just a blanket, ‘Hey we're OK, really. Here's our layout, here's what we're invested in, here's what we're doing, as a company.' Those types of letters or information are helpful."
The message seems to be getting out. Roger Smith says, "The stock market has been around a long time. The companies are strong. It's just a tough, trying that that hopefully will turn around, and we'll look back on this as a good time to buy."
Redd says, "We've got to weather through this storm, and it is a crisis. No doubt this is a crisis, but a crisis is a terrible thing to waste."
Redd says those who have time to wait the market out should invest in health care and industrial stocks.
E-mail: corton@ksl.com
