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Drop in Stocks is Nothing to Worry About, Says Expert

Drop in Stocks is Nothing to Worry About, Says Expert



Estimated read time: 2-3 minutes

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Amanda Butterfield ReportingToday was the biggest one-day drop in stocks since the market opened after 9-11, and many investors say they are worried, but don't panic, it could turn into a good opportunity for you.

It's the front online page of CNN, MSNBC, CNBC, and FoxNews, and maybe it's left you a little unsettled, but it shouldn't.

Kurt Brown, Alta Capital: "It makes headlines, and it's scary."

Scary, but nothing to panic about says Kurt Brown.

Kurt Brown, Alta Capital: "No, no reason to panic."

Kurt makes a living dealing with people's portfolios and investments, and says it's perfectly normal the market moves up and down. Now that it's down, it could be a time to do a little bargain shopping.

Kurt Brown, Alta Capital: "Yea, stocks are on sale. People have a tendency to buy when they go up up up, but you really want to buy them when they are on sale."

Also, keep in mind the market has been up about seven percent since July; Kurt adds that makes today's drop seem not as significant. Here's some of the reasons for the selling on Wall Street today: News that Vice President Dick Cheney was the target in a suicide bombing in Afghanistan, talk by Allan Greenspan of a possible recession in the economy, but the biggest reason is a decline in the Chinese market.

Steven Thorley, professor of finance BYU: "Because of the globalization, and the interconnection of all the economies, that rippled through the world."

The European market and Japanese market have also seen a slide in stocks.

Steven Thorley, professor of finance: "Everyone's economy is dependent on everyone else's because we exchange goods and services, and there's a lot of imports coming from our country."

Again, Professor Thorley agrees this news shouldn't cause panic.

Steven Thorley, professor of finance: "There's no reason to believe this will be a long-term event in the scheme of things."

And with today's headlines, Kurt advises this:

Kurt Brown: "One is, people should know what's in their portfolio, they should know what they own."

Kurt Brown, Alta Capital: "This could end up being a really good buying opportunity. It's like buying anything else...take time, do your research."

And expect the market to open down in just a couple of hours.

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