Hasty acts could create your own financial crisis

The Ticker

October 10, 2001|By Julius Westheimer

"DON'T create your own financial crisis in the wake of the terrorist attacks," we hear from Charles Kadlic, investment adviser and author of Dow 30,000, Fact or Fiction?

"Don't try to outsmart the market by jumping into one stock or sector. The market adjusts to perceived economic risks, this time falling 7 percent on the day trading resumed after the attacks - but then it stabilized.

"Fear, greed and emotional investing are enemies of financial well-being. A well-crafted, long-term plan should hold up when negative surprises strike."

WORDS OF WISDOM: "If investors would just buy good businesses rather than play the market, they wouldn't just grab stocks because they're going up, as so many did with high-techs in 1999. They also wouldn't sell their stocks just because prices dropped, as many are tempted to do now." (Maury Elvekrog, investment adviser, in Better Investing, November)

RETALIATION COMMENT: "Stocks behaved well after the allies' counterattack, but I'm still cautious. This business slowdown won't go away in a hurry." (David Malpass, Bear Stearns economist, on CNBC)

"Stocks made a surprisingly strong showing early this week but we must get through October, always a rough month. At this time I like Pfizer Inc., American Home Products Corp. and Verizon Communications." (Larry Wachtel, Prudential Securities)

"We must now invest intelligently, not emotionally. If we do, we can work through this military action and the anthrax scare." (Bernadette Murphy, market analyst, Kimelman & Baird)

"The World Trade Center attack and panic created a steep market decline, with deep oversold levels in both momentum and sentiment. The real rally, once it begins, will last through to early 2003 at least." (Kirkpatrick Monthly Overview)

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