Dow decline concerns investors Save Email Print
To stay or not to stay?
Posted: 5:43 PM Oct 10, 2008
Last Updated: 7:11 PM Oct 10, 2008
Reporter: Mark Peterson
Email Address: mpeterson@wndu.com

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As the Dow continues to decline, so to does the courage of some Michiana investors.

Today, the connection between Wall Street and Main Street was crystal clear---and it was a connection that some stockholders tried to cut—by getting out of the market.

“I got out today,” said Dr. Michael Sheehan of South Bend. “I got out, although I don’t have that much to lose thank god.”

Sheehan is a psychologist who says he couldn’t take the turmoil. “We’re way too involved in money in our culture anyways,” he said. “if there’s any one thing this whole tragedy shows us is that we’re so consumed by money, that we let it effect our day to day lives.”

For some, the dropping Dow reminded them of days gone by. “Well, I think we’re seeing a repeat of 1929,” said Bill Eagan of South Bend.

Eagan was alive during the last depression. He said he wanted to get out of the market now, but feared he was already too late. “It’s the wrong time to do it,” he said. “That’s the trouble at my age.”

Not everyone is so pessimistic about the ways of Wall Street.

“I’m not worried, I am paying attention you know,” said Jane Plank of South Bend. “You know it’s all going to pan out eventually.”

Plank said she was glad to have her health, and that in ten years, she fully expected to recover all the money she lost in the market.

While Wall Street greed and the mortgage crisis arguably played a role in the Dow’s latest slide, perhaps Main Street ‘grief’ or fear—itself is now helping to fuel the fire.

“We see that in the last few days the markets have been particularly pessimistic,” said University of Notre Dame Professor of Finance, Richard Mendenhall. “We've seen big drops close to the close that's probably because people have made withdrawals from mutual funds. Certainly there's data that suggests that. That means individuals are being very pessimistic and its the Main Street now, that' s driving the values on Wall Street.

Mendenhall said he was prepared to stay in the market.

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Posted by: Anonymous on Oct 11, 2008 at 12:09 PM
I'm afraid I can't relate. I'm not an investor. I live my life creating real wealth; not gambling, cheating and wheelin' 'n dealin'.

Posted by: Farmer Frank Location: Rural Marshall County on Oct 11, 2008 at 05:14 AM
This is very simular to the dot com crash. Lots of money bidding up the value of stocks that have poor P\E ratios and highly leveraged companies. The old school of investing and fiance taught us that you look at a companys ability to earn levels of acceptable earnings, or have some tangible basis to support the value of its stock...book value, for example. Today, investment guru's tell us to dump money and let them pick stocks, looking to short term niches to grab quick gains.Four months ago i was looking for an earnings stock and Edward Jones said taht Wachovia would be a great investment.....i chose NISOURCE. the broker couldnt understand why i would not take his advice......was he so out of touch with the economy that he couldnt see what was coming????Bottom line, dont be afraid to invest, but use your head. Use a discount broker, because the other guys are just looking at commission when you buy, and when it goes down, commission when you sell....thats yet another problem....

Posted by: Web Smith Location: California on Oct 10, 2008 at 08:30 PM
Wall Street goes up and down based on imagination and people make a living imagining what it all means. It's all enough to let your imagination run wild. $750 billion added to a $10 trillion national debt and the lala land politics that created it is good material for another Golden Compass type movie with Nicole Kidman. Imagine climbing a stack of dollar bills that reaches into space over three times the distance to the moon on your way to magic land. You hope that the fabled magic wand is there because, once you reach the top, you have to jump. The only problem is that, this time, imaginations have turned into madness. It's time to pull the plug on this fantasy movie. http://ewebsmith.com/self/StandUp.html

Posted by: Steve-O on Oct 10, 2008 at 05:55 PM
I am staying in like a real American Man. I am in it for the long haul for MY country. Even, though the ones that know me, know I drive a Honda

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