Expert Tries to Ease Economy Concerns

By Scott Thompson & Dan Bewley, News On 6

The Dow Jones' roller coaster ride this week has investors worried about making the right decision.  Many wonder if they should get out of the stock market or just be patient.

"Well certainly we're in unusual times," said Patrick Donica, Securian Advisors MidAmerica.

Financial advisor Patrick Donica has been watching the market from his Tulsa office. He says most analysts didn't expect the Dow to drop below 10,000. When it did, investors started to sell.  Donica says that may not have been a good move.

"I really think most of this is strictly fear and fear is not a good thing to bring into the stock market because the stock market rewards long term patience," explained Donica.

Donica says the losses right now are only on paper. He expects the market to bounce back to make up most of the ground.

Donica adds, even if you're retired and have no official income, you won't need all of your cash in the next year. So if you sell now, he says, those paper losses become real money.

"If you're not in the market and it comes back 15-20% that is a real loss you will incur," said Donica.

Donica advises to stay the course and help stabilize the market to begin the recovery. He reminds investors the stock market has done this before - from the oil bust to Enron, the market can move up and down.

"In the last 20 years we've seen several times where there's been a lot of volatility but each time the markets have stabilized and they have recovered and those who have patience have been rewarded in the long term," said Donica.

Donica says most market analyst expect the recovery to take three to five years. He says if you feel you absolutely have to get out of the market, you should only raise enough cash to last next 18 months.

Editor's Note:  If you have more questions about the economy in crisis, click on to NewsOn6.com for answers.  On Monday, October 13, NewsOn6.com will host a live web chat with an Oklahoma financial expert.  Jake Dollarhide of Longbow Asset Management will be online from Noon to 1:00 p.m. to answer your questions. 

Dollarhide is a Registered Investment Adviser with the Oklahoma Department of Securities. He has an undergraduate degree in Finance and a Master of Business Administration from The University of Tulsa.  He's co-founder of Longbow Asset Management - a registered investment advisory firm based in Tulsa, Oklahoma. 

Click on to NewsOn6.com on Monday, October 13, from Noon to 1:00 p.m.  Look for the banner on our home page, then click in to get expert advice - free from NewsOn6.com.