Stocks drop as fear grows - WALB.com, Albany News, Weather, Sports

Stocks drop as fear grows

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By Len Kiese - bio | email

ALBANY, GA (WALB) - The economy continues to tumble and so does the stock market.  

For the second day in a row, the Dow closed below 7,000. That's the lowest in 12 years. Financial Advisor Sammy Smith, Junior says it's due to growing consumer fear and growing negative news about the economy.

People are pulling money out of stocks to prevent greater losses. "Hopefully things will continue to stabilize. That's what has to happen now. We had some stability the past few months but as time goes on and traders and analysts start looking at the budget and all that good stuff, you have a lot more fear to come in as the corporations start pulling out their earnings and all you hear is negative news," said Smith.

Some positive news--Smith says it's a good and cheap time to go ahead and buy into the market in small intervals if it's for the long-term.

He also says to make sure you have a diversified portfolio meaning a mixture of stocks, bonds and cash reserves.

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