Triangle investors keep eye on stocks as Dow tumbles
Posted August 24, 2015
Raleigh, N.C. — Eric Misak of Raleigh spent most of Monday watching his portfolio shrink as stocks nose-dived during the worst day Wall Street has seen in four years.
The Dow Jones industrial average plummeted more than 1,000 points at the start of the day before rebounding slightly, then it tumbled again before the markets closed. The sell-off was spurred by a worse-than-expected economic forecast for China.
“I've been more aggressive in the last few years, so that's why I took a big hit,” said Misak.
He’s 53 years old, married with two teenagers – and a decade away from retirement. It’s a position he said will enable him to ride out the storm.
Others aren't as fortunate.
“The knee-jerk reaction is to get caught up in the panic and to sell,” said Adam Morgan, senior investment adviser with PNC Wealth Management.
Morgan spent the day reassuring clients that Monday’s crash won't be a repeat of 2008.
“Low cost of energy, low cost of debt, seemingly contained inflation and an economy that's hiring every year,” he said. “So, the reality is that we're not on the precipice of recession.”
He and other analysts said the market is overdue for a slide.
“While it seems volatile and seems tumultuous, there's actually some comfort in knowing that volatility is a constant,” Morgan said.
He said those who should be concerned are investors who need to cash in their stocks in the next three to six months. Others should stay focused on the long term.
Local stocks also took a hit. The WRAL Techwire 30 dropped 36 points. It is a combination of 30 tech and life science stocks, including Cisco, GlaxoSmithKline and Red Hat.