Curtis D. Sharp
Executive Officer for Denominational and Public Relations
214-720-2127
Curt.Sharp@GuideStone.org

Updated 12/16/08: Market swings shouldn't panic investors

December 16, 2008

DALLAS — American stock markets Tuesday reacted favorably to the Federal Reserve’s decision to cut interest rates. Meeting in its final scheduled meeting of the year, Fed policy makers lowered the federal funds rate to a range of zero to 0.25%. The rate had been 1% since the Fed’s October meeting. Stock watchers expected a smaller cut to 0.5%. Many observers hope the rate cuts would help to thaw the credit freeze and improve liquidity for businesses and consumers.

The markets, which had been flat most of the day, shot up in afternoon trading. The Dow Jones Industrial Average closed at 8,925.41, up 359.61 points, or 4.2%. The Nasdaq closed up 5.41% and the S&P 500 was up more than 5.1%

While Tuesday’s market performance may be encouraging for stock and stock mutual fund investors, it’s important for long-term investors to rely on their investment strategies and not make decisions based on short-term market changes, good or bad.

Read more about how investors should respond to this volatile market.

Word Version - Updated 12/16/08: Market swings shouldn't panic investors