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Friday, May 6, 2016

Local pros: How to beat the 2001 stock market worries

Thursday, April 5, 2001

Invest now? That might sound crazy, but market experts say despite the media's day-to-day, minute-by-minute updates on the downturn stocks have taken recently, people dedicated to a long-term savings plan are set to win.

Investment experts agree that it is important to look at your "time horizon," or the length of time you wish to invest.

"It should not be a week or two, but three, four, five years," said Alan Bowles, vice president of A.G. Edwards and Sons, Inc. "Then you don't get whipsided by the market like we have in the last three or four months."

While daily volume and closing prices are a concern for many investors, Bowles said that is just a short-term experience.

"You really have to look at if the economy is sound," he said. "Long term, the economy always expands, but we do have some recessions in between."

Rick Peterson, investment executive for U.S. Bancorp Piper Jaffray, agreed.

"Don't worry about today - your price is five years from now," he said.

Good solid stocks are always increasing in value over the span of several years, experts agree.

Peterson admits that a person does not have to work very hard to paint a bleak picture of the economy and the stock market at this time.

"Companies are disappointed with earnings estimates," Peterson said. "We're hearing about companies laying off, about trouble in other parts of the world's economy, and there's rising energy costs and energy disruptions."

But he said that is just a small trend in a larger picture. The question may be between black and white TVs to high-definition TVs.

Read the rest of this article in the 4/05/01 Pilot Tribune.