Local investors are generally remaining calm as the stock market continues to be volatile. Some are even taking advantage of the uncertainty.
“I’m going to buy. I think there are some good buys out there,” Richard Stubbs said as he left a Scottrade office in Cherry Creek North on Wednesday morning after reopening an expired account with the online-trading company.
Stubbs, a business owner dealing with imports and exports, said he plans to purchase stocks, add money to his Roth IRA and possibly invest in real-estate investment trusts.
“It might take awhile (to profit). I don’t think there will be an immediate return,” he said. “I should have bought when the Dow was down 778 points.”
The stock market has sent investors on a wild ride in recent weeks, with massive plunges — including Monday’s 777.68-point drop in the Dow Jones industrial average — and subsequent spikes. The Dow closed at 10,482.85 Thursday, down 348 points.
Area financial advisers said they’re fielding a few extra phone calls and reminding clients that a long-term strategy and a well-diversified portfolio would help them weather the recent roller-coaster-like fluctuations.
“I am absolutely telling people ‘don’t panic.’ Panic is not a good investment strategy,” said Barbara de Jong, a financial adviser with Edward Jones. “This is a confidence-tester. . . . Our goal is to make sure people keep their eye on long-range plans. . . . We know that every few years we’re going to have a bad year.”
The situation was similar at a local Charles Schwab office.
“We’ve been reiterating our philosophy and letting people know that Schwab is in good financial health,” said Lisa Herhold, vice president of the Cherry Creek Schwab branch. “These are difficult times. There might be a few more calls.”
Peter and Gillian Drummond have yet to call de Jong, their adviser.
“I’ve been in the market since 1958. I’ve seen stocks go up and down like (a lid on) a toilet,” said Peter Drummond. “Things straighten out one way or another. I’ve lived in Europe long enough to know that you put up with a lot of things you don’t like.”
Although they’ve lost about $40,000 in book value recently in one particular account, the retired Denver couple said they have other investments to fall back on. They’ve cut some discretionary spending and put off plans to travel the country in their RV, given the price of gas.The former subcontractor and real-estate investor said moving money from different accounts would be “counterproductive” given the fees to sell and buy various funds. They’re putting cash in the bank.
“We’re not concerned about it,” said Gillian Drummond. “We’ll just sit it all out. There’s nothing we can do.”
Kimberly S. Johnson: 303-954-1088 or kjohnson@denverpost.com
