RALEIGH — It has been a taxing week on Wall Street. The Dow Jones industrial averages and the Nasdaq composite index both broke their records for the biggest one-day point drops, but the downturn could have an upside.
Financial consultant Ronnie Grove kept a close eye on the topsy turvy stock market. He says his phone rang off the hook with concerned questions from many of his clients living in the Triangle.
"It's the largest point drop in the history of the New York Stock Exchange," Grove says.
Grove says an inflation report, overvalued tech stocks, too much selling and not enough buying all contributed to overheating the market. He says day traders, people who were in the market to make a quick buck, were the ones hit hardest.
For the investor who is in the long haul though, Grove says this downturn is actually a buyer's market.
"As that money comes in, you're buying more shares because those shares are cheaper," Grove says. "So when it turns and starts back up, you have used dollar cost averaging to increase your profit potential."
Mark and Amy Weldon have been married about six months. Like many working people, they invest through their employers for their retirement.
"In the big scheme of things, the first thing I started thinking is, 'Good, the prices are lower. I can buy more. I'm in it for the long term,'" Mark says.
Groves says on Monday, investors should keep an eye out on some best buys. In some cases, he says people could get two for one since the shares are cheaper.
Several local stocks did not fair well on Friday.
Cisco dropped four points. Glaxo Wellcome almost lost the same. IBM lost more than $5 a share Nortel lost $7 a share and Red Hat, almost $4 a share.