Another round of Fill in the Blanks with Dave Ross
Aug 25, 2015, 7:13 AM | Updated: 9:05 am
It's a financial edition of Fill in the Blanks. This time, Dave Ross asks you what the proper response to a stock market dive is.
It’s time to fill in the blanks.
This is when you, America, can prove how smart you are by filling in the blanks.
So here we go. Yesterday, we heard reports saying things like, “the market has gone off a cliff.”
When you hear a report like that the first thing you should do is _____.
Did you say, “freak out?”
No. Wrong.
The first thing you should do is stay calm. The professionals say the wisest thing for investors to do in turbulent times is nothing.
“I hope that you are just going to sit tight and do nothing,” CBS analyst Jill Schlesinger said.
Hang on to your stocks, stick to your plan, and do not get emotional.
But now, suppose you tuned into Pat Robertson yesterday and heard him say, “The judgment of God might be lifted from us, but it’s coming. We just got a little taste of it in terms of the financial system.”
When you hear that, you ________.
I hope you said “Still stay calm.” That’s what the professionals traders do. So don’t panic.
So let’s go over this:
When the market does down? Don’t panic.
If the Dow drops 200 points?: Don’t panic:
If it drops 500 points? Don’t panic.
If it drops 1500 points?! Don’t panic.
Now suppose you’re in your car, traveling down a winding mountain highway with no guard rail and you get a call from your broker telling you not to panic just as your brakes give out. What you should do is: ______.
That is when you do panic.
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Tune in to KIRO Newsradio weekdays at 5am for Dave Ross on Seattle's Morning News.
