The commotion on Wall Street has impact on members of the CU community
Investors in the CU community have faith in recovery in the long run after Wall Street stocks plummeted on Tuesday.
Although stocks are up, investors are still shaken by the drastic sell-off of earlier in the week. The step-up Thursday added an additional 0.9 percent to the Dow Jones & Co. industrial average, but that is still not enough for some at CU.
“My grandmother gave me tons of stock as a child in Exxon, but after the plummet this week I’m scared to see how much I lost,” Lance Lacy (cq), a second year economics major, said. “In pretty much all my classes we have been talking about it.”
After an emergency meeting Tuesday morning to cut the interest-rate, all three indexes tried to recover in a late-session turnaround.
“I believe in the American enterprise, I have full faith in the bonds and investments of the country,” Kishore G. Kulkarni, Ph.D., a professor in the Economics Department. “There are always going to be falls, but in the long-run I would stick with my investments.”
The major reasons for the drastic decline come from many sources. The housing market, the war in Iraq, and elections are all reason for the influx in the economy. Future investments will not only affect the economy in the United States, but also in the global market.
“This will affect all trade within small and large countries. Chinese and Indian economies are crumbling due to the loss of the American dollar value,” Kulkarni said.
Pensions, retirement funds, and all other business savings accounts will decrease with the loss of trade value. It will be up to the American buyer whether to stay in the market or not. Families with a constant income will be greatly affected due to the savings from their employers. Several families will have to give up thousands of dollars from their retirement programs to equalize the loss.
Kulkarni said the market will recover with time, but it is always a gamble when it comes to investments.
“Wait it out, that’s the beauty of America, it can always recover,” Kulkarni said.
Contact Campus Press Staff Writer Justin Johnson at Justin.d.johnson@thecampuspress.com
