It’s ugly out there for exchange traded fund (ETF) investors, but we have always said and will reiterate that while the temptation is to panic, it’s wise for investors to keep their cool.
These are uncertain times – no one really knows if this crisis is going to end next week, or next year. The only thing you can control is your own reaction, and resist the urge to make decisions out of fear.
Today marked the seventh straight day of losses for the Dow Jones Industrial Average, and investor fear is weighing on the markets. Some economists say that a recession is likely.
A survey conducted by the Wall Street Journal finds that on average, the 52 economists surveyed agree that gross domestic product (GDP) is going to contract in the third and fourth quarters, as well as in the fourth quarter of 2009.
If these predictions come true, it will be the first time that U.S. GDP has contracted for three consecutive quarters in more than 50 years. The economists also increased the odds of a recession in the next 12 months at 89% – up starkly from 60% in last month’s survey, reports Phil Izzo for the Wall Street Journal.