Tips For Dealing With Stock Market Downturn

By Craig Day, The News On 6

TULSA, OK -- People all over the country are worried about the stock market's downward spiral.  They're concerned about their 401 Ks and other investments.

With Wall Street staggering, investors lost $700 billion from retirement plans and pension funds.  The financial meltdown slammed stock markets worldwide.

Jake Dollarhide is with Longbow Asset Management.

"The herd mentality is relevant.  When things are going up, everyone buys.  When things are going down, everyone sells," said Jake Dollarhide.

Dollarhide says the developments on Wall Street have historic ramifications, but there are steps investors can take to protect their investments.

Number one, he says, when some of the big players on Wall Street face trouble, don't overreact with a selling spree.

"Don't just sell because the market fell, because you may miss it on the rebound and you've just caused yourself double the pain," said Jake Dollarhide.

Number two, now more than ever, rattled investors should make sure their investments are diversified.

"There are always segments of every major sector in industry which are doing well even if the market is not," said Jake Dollarhide.

Dollarhide says every investor is different based on goals, their age and aversion to risk, so it's important to do research.

"Just know what you're in and don't be afraid to ask questions.   The simplest questions are often the most important ones," said Jake Dollarhide.

Even with the upheaval on Wall Street, Dollarhide expects the financial markets to make corrections and recover.

"We're selling right now on fear.  And, that will go away.  The question is:  is it going to be next week?  Is it going to be the end of 2009?  When is it going to be?" said Jake Dollarhide.

Dollarhide says a good rule of thumb is, if you can't do without an investment for seven years, it shouldn't be put into the stock market.  He says there are safer, shorter term investments like bonds or CDs, but the likely returns aren't as high.