Mendoza School of Business

Experts agree: Don’t panic over stocks

Published: August 8, 2011 / Author: Jim Meenan

you covered your eyes when you looked at your 401(k) Monday, you probably
weren’t alone.

On a day when volatility was again the buzzword
on Wall Street, many in the Michiana area wondered just what they should do
with their stock portfolio.

The Dow Jones industrials average fell 634.76

It was the sixth worst point decline for the Dow
in the last 112 years and the worst one-day drop since December 2008.

The answer from a banker, a financial adviser
and a finance professor on what the average person should do, though, was
pretty similar to what they have heard in the past: Don’t panic.

Jeff Bergstrand, a professor of finance
in the Mendoza College of Business at Notre Dame, also believes in terms of the
stock market, it’s time for

“I’d say people don’t want to make rash
decisions in this kind of free-fall market, because it’s a very volatile market
so there’s some possibility it could bounce back up in the next couple of
days,” he said.

But his optimism in the economy seems to end

“I would say right now that we are on the
precipice of another recession,” he said, adding that a recession is
contracting economic activity for at least six months.

It’s not just the stock market that has
troubles, he said.

To read the entire article visit: Experts agree: Don’t panic over stocks




Topics: Mendoza