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

Updated 10/2/08: Market swings shouldn't panic long-term investors

October 2, 2008

Long-term retirement investors should keep their focus on their goals, and not on short-term market fluctuations, even with recent volatility in the market that have led to some of the worst trading days since the Sept. 11, 2001, terrorist attacks.

On Monday, September 29, investors witnessed the Dow Jones drop almost 778 points — about 7% — in the wake of the House of Representatives’ rejection of the Emergency Economic Stabilization Act of 2008. The S&P 500 and Nasdaq markets each saw similar percentage declines in value. 

Monday’s market decline continued a volatile month on Wall Street brought on by an expanding credit and liquidity crunch. September saw investment bank Lehman Brothers fail, Bank of America purchasing Merrill Lynch, a bailout of AIG, the purchase of Washington Mutual by J.P. Morgan Chase and Citigroup’s purchase of Wachovia. Although a rescue plan, supported by the White House, both presidential candidates and Republican and Democratic Congressional leaders failed in the House by a slim margin on Monday, the Senate approved a modified plan on Wednesday night. The House is expected to take up the revised plan Thursday.

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

Word Version - Updated 10/2/08: Market swings shouldn't panic long-term investors