Former Federal Reserve Chairman Alan Greenspan is warning investors to prepare for the worst.
In recent weeks the stock market has staggered. With the market dropping steadily over the past month some Siouxlanders, like Pamela Marsh are skeptical.
“I don’t play the markets because it is too much of a gamble for me. I heard on the national news last night that it’s as bad as it has been since the depression, so that’s pretty scary I would hate to have a lot of money in there right now,” said Pamela
Historically, a dropping market has caused investors to pull their money. Financial advisor, John Pecaut, advises against that.
“In retail, when things go on sale, people go to the stores and buy them. When it comes to stocks, people tend to have the reverse psychology. When things are going down, they want to sell them, but that’s actually the time to buy them for lower prices,” said Pecaut.
Corey Wrenn is the president of Pecaut and Company. He said if stock market patterns continue, it could impact the local economy.
“It could impact people by causing them to stop buying things, so it can impact the economy indirectly by people saying, ‘I’m not as wealthy as I was, so I’m not going to buy say that car or that television set,'” said Wrenn.
“It’s the nature of the stock market to do such a thing, so I mean you [have] to be scared if you got stocks in it but I don’t have any,” said Richard Blakely a concerned citizen.
Wrenn said stocks are meant to be a long-term investment and will experience ups and downs during that time.