Oct 6, 2008 7:49 pm US/Eastern
Expert To CBS 2 HD: Good Time To Buy Stock
Smart Money Columnist Jack Hough Says More Good Than Bad Should Come Out Of Financial Crisis
NEW YORK (CBS) ―
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Traders and Specialists work the trading floor of the New York Stock Exchange. (file)
David Karp/AP
With the Dow's frantic trading session on Monday, investors have many questions.
CBS 2 HD found out what pressing concerns people have and posed them to an expert.
In Times Square, jittery investors were checking the stock ticker, and offering an array of questions. The first is about the stock market.
"I'd want to know if it's a good time to start buying?" investor Frank Valenti said.
CBS 2 HD asked Jack Hough, a columnist with Smart Money magazine, who recently wrote, "Your Next Great Stock."
"It's an excellent time to get it," Hough said. "For a person in his 30s, probably the first time we've seen share prices at or below their historic average."
One woman, near retirement, wondered about this downturn.
"How long is [the downturn] going to last?" investor Renee Harwood said.
"It's going to be longer than people expect -- three to five years," Hough said. "I think that's a safe bet.
"There's one group that will be stung, those people who are on verge of retirement or went into retirement."
Investor Bill Rudowitz asked: "I really want to know what do we do about money in a 401K. With everything down, do you leave it or move it?"
"If this is money you can leave there for 10 years, you're in good shape," Hough said.
Investor Paul Gugino how everyday folks are going to survive: "How long will the average American have to suffer as a result of what we're going through?"
"There's probably more good to come out of this than bad," Hough said. "They'll be able to put money into share of good stock, buy into house and put money into house. [It will] no longer bloated."
So, no decisions are one-size fits-all. They depend upon age, goals and retirement.
The credit markets remain stagnant, a sign that banks are too afraid to lend. The Federal Reserve is making more money available for borrowing, but no one expects the credit markets to ease up anytime soon.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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Timeline: U.S. Credit Crunch & Financial Failures
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