A massive decline across global financial markets and a more than 630-point drop in the Dow Monday had investors worried and bracing themselves for the next curve ball.
Stock Broker Joe Haan said none of his clients have sold anything today. That might be because he and other area financial experts are saying there’s hope on the horizon.
“An easy climb back up … No.” said Mark Young, a financial planner with Raymond Jones Financial in Idaho Falls. Young said it won’t be easy but the nation’s stock market can rise again.
“It’s not that we can’t do this. From the rest of the world’s decision we’ve decided not to,” said Young.
In fact, he said although stocks or equity investments are down, bonds have reached a high.
Young said the interest rate on 30-year bonds at noon today was at 3.72 percent, which is higher than 10-year bonds at 2.38 percent.
As long as long-term bonds are higher than short-term, they make for a positive yield curve.
“Today we have one of the most positive yield curves we’ve had in a long time,” said Young.
That means the nation’s financial market is already showing signs of evening out in the future.
Young chalks up our current shaky economy to indecisiveness from congressional leadership, saying Idahoans are holding steady.
“The markets will respond quite favorably once they see Americans’ resolve in our system,” said Young.
On the housing front, Real Estate Broker Greg Vinnola is remaining calm when it comes to estimates.
“It’s a little too early to tell. We think interest rates have been stable all this time and I don’t anticipate them going up a lot,” said Vinnola.
Vinolla said their lender at the Bank of Idaho usually gives them a rate report daily but is holding onto numbers until tomorrow as they watch the market.
Haan said it’s normal for the stock market to dip 5 percent at least three times a year.
Haan hopes the U.S. will pull out of this slump just as it did in 2010.