LOS ANGELES (CBS) — In the world of personal finance, it’s not just a matter of determining if the glass is half-full or half-empty, but whether you should be drinking at all.
That’s the question facing investors Thursday after another volatile day on Wall Street saw the Dow Jones Industrial Average drop by 419 points in what was a sharp sell-off almost from the day’s opening bell.
KNX 1070’s Pete Demetriou reports the recent swings in the stock market have many second-guessing where they put their money.
Ed Wedbush, President of Wedbush Securities said that based on the drop in the overall indexes as well as individual stocks, if a person has 20 percent or more of their portfolio in cash, there are options.
“They should be starting to nibble and buy in here, and I’d say buy on a scaled-down basis, meaning they can’t pick the exact bottom so they buy stock at a price, and if they buy it they put in a bid for a lower price,” said Wedbush.
Those investors who have very little or zero cash available “should literally do nothing at this point,” said Wedbush.
Lingering uncertainty and a growing lack of confidence in any sustainable U.S. economic recovery continues to rattle financial markets in the U.S. and abroad, but Wedbush warns investors not to make any moves out of fear.