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

Updated 12/1/08: Market swings shouldn't panic investors

December 1, 2008

DALLAS — American stock markets Monday erased much of the previous week’s gains on reports that the United States has been in a recession for almost a year, and on indications that the downturn may last longer than normal. The Dow Jones Industrial Average dropped almost 680 points — 7.7% — to close the day at 8,149.09. The S&P 500 and Nasdaq markets were each off almost 9%.

The losses came after a week when President-elect Barack Obama announced his appointments for key economic posts in his new administration. Markets surged for five straight trading days last week, and the preceding Friday.

Monday, the National Bureau of Economic Research confirmed what most economists had expected: The U.S. has been in a recession since December 2007. The NBER is a private group of leading economists. The organization determines the start and end of economic downturns.

While Monday’s market performance may be disheartening 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 12/1/08: Market swings shouldn't panic investors