(Source: Florida Times Union)
When the Dow plunged below 7,000 this week for the first time in a dozen years, investors were left feeling even more nervous about their nest egg - and asking questions.WHAT SHOULD I DO NOW?It depends on things such as life stage, current asset mix and other factors, including how well you sleep at night. Financial advisers all have different suggestions, although most seem to be fairly pessimistic about stocks in the short term.SHOULD I DUMP MY PORTFOLIO'S STOCKS AND PUT EVERYTHING IN CDS OR A MONEY MARKET FUND?Probably not, according to most advisers, because timing the market doesn't work for most people. "It depends on when they need the money," said Marshall D. Gunn Jr., a Jacksonville financial adviser. "But if they need the money soon, they shouldn't have been there to start with."SHOULD I STOP CONTRIBUTING TO MY 401(K)?Absolutely not, in most cases. Not only are contributions tax- deductible and future earnings tax-free, but the money can be allocated to conservative funds, such as stable value funds, which are mostly unaffected by swings in the stock market.HOW LOW WILL THE MARKET GO? Nobody knows. Several advisers predict it could be a year or more before the market begins to make a serious recovery and have encouraged clients to move away from stocks. "We've gone totally defensive for the entire firm," said Hank Madden of Madden Financial Services, who has moved toward cash, treasury bills and other safe havens.HOW CAN I STOP WORRYING SO MUCH ABOUT MY INVESTMENTS?"Emotionally, some people need to go to the sidelines," said Gunn, meaning get out of stock or stock funds. But for most people, the key is to be well-diversified and to have an appropriate allocation for their life stage and other considerations, he said.
The Times-UnionTHE HIGHS AND LOWSOn May 1, 1997, the Dow Jones Industrial Average closed at 6,976 points. It was the last time the index had finished a day of trading below 7,000 until Monday. Oct. 9, 2007, is considered the day the Dow hit its peak, closing at 14,164.LOCAL STOCKS OF INTERESTSTOCK MAY 1, 1997 OCT. 9, 2007 TUESDAYWinn-Dixie N/A 16.52 9.39Fidelity National N/A 17.54 15.76MPS Group 18.12 12.32 4.46Landstar System 3.19 43.92 28.86PSS World Medical 14.38 19.53 13.67Stein Mart 14.12 7.79 1.05Rayonier 17.96 46.99 25.40St. Joe Co. 24.27 35.51 16.40Jacksonville Bankcorp N/A 26.99 7.25
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