Recovering from DOW's downfall - FOX34 Lubbock

Recovering from DOW's downfall

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Photo of a NYSE trader after stocks fluctuated Monday, August 24th. Photo of a NYSE trader after stocks fluctuated Monday, August 24th.
LUBBOCK, Texas -

The DOW's 1,175 point implosion on Monday was the biggest decline in a single day ever. Some financial planners are optimistic about the decline. Mark Bass, a representative for Cetera Advisors, LLC, thinks of it as buying items on sale. 

 "If you really think about it, you hope things drop because you are buying at lower prices," Bass said. " Anything can spook the market that results with it getting a little bit better evaluation."

Although most experts thought that the drop was good for the market, some of them, including CEO and Chairman of First Bank and Trust Barry Orr, were confused. 

 "There's no reason for that market to be dropping like it is, I think it's a correction," Orr said. " There's probably been a little bit of exuberance in that market, but when you look at all of the corporate reports and corporate earnings coming out, everyone is paying record dividends. You're seeing earnings unlike any that you've seen before."

Orr said to not worry about your 401-K or other investments, and advised to hang in there. 

"I would not panic. I would take a deep breath and realize that it's a buying opportunity," Orr said. "If you think about it, our contributions over the last few months have been at a very high point, with the DOW very high."

  Experts said a four percent loss isn't historic, or economy breaking. In the long term, we're still far away from another recession. 

  "This is not 2008. There is so much liquidity in the market on balance sheets across the country. Earnings and pipelines are strong, Manufacturing is increasing, all components are increasing," Orr said. 

  Despite the precipitous drop, the DOW average is still up 21 percent over the past year. 



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