Arab Today, arab today investors run for cover as deadline nears
Last Updated : GMT 14:18:47
Arab Today, arab today
Arab Today, arab today

Investors run for cover as deadline nears

Arab Today, arab today

Arab Today, arab today Investors run for cover as deadline nears

New York - Arabstoday

Growing nervous as a possible government default draws ever closer, more and more ordinary investors are calling their brokers and moving their money out of stocks and mutual funds for fear of a plunge in the market next week. The stock market declined for a sixth straight day on Friday as financial advisers fielded a new round of calls and emails from clients wondering whether to get out or sit tight. Investors pulled about $32 billion (Dh117.5 billion) out of money-market mutual funds for the week that ended last Wednesday, according to fund tracker Lipper. That is just a tiny fraction of the $2.6 trillion invested in such funds. But the exodus appeared to be accelerating at week\'s end as tomorrow\'s deadline for reaching an agreement on Capitol Hill drew near. More concern by the day Article continues below \"I\'m having to talk a lot of people off the rooftops,\" said Austin Frye, a financial planner in Aventura, Florida. Until the last few days, he said, clients were \"reacting very well\" and not asking to take their money out of stocks. Now they are showing more concern by the day. Sean Sproul, a utility analyst in Columbus, Ohio, shifted all of the money he had in stock mutual funds into the most conservative bond fund his 401(k) retirement plan offers. Sproul said he feared that if he waited until tonday, it would be too late. \"My fear is that the stock market is going to crash dramatically,\" he said. \"I want to be wrong, but I\'d rather be safe and do something conservative. I can always move back to those other funds once I have confidence.\" That sentiment was shared by Paula Schmidt, an IT consultant in San Jose, California. She sold all her bonds this week and is holding the money in cash until the stand-off in Washington is resolved. \"The only safe thing to do is park my money and wait and see,\" Schmidt said. \"It\'s a free-for-all right now in Congress, and the US and global markets will react negatively.\" Seeing one of her investments lose $30,000 in a single week during the market meltdown in 2008 still stings. Her retirement savings did not recover until the end of last year. Officials in Washington, including Treasury Secretary Timothy Geithner, have warned that a default could have catastrophic economic consequences. If a deal isn\'t reached by tomorrow to raise the debt ceiling and propose measures to reduce the deficit, the uncertainty could trigger steep declines for stocks and bonds, even a return to recession. At a minimum, interest rates would almost certainly rise, raising the cost of mortgages, credit card accounts and other consumer loans. Losses will be recovered Financial advisers are generally urging clients to remain calm and stay invested because of the difficulty of timing the markets and the strong likelihood that any losses will ultimately be recovered and then some. The potential market turmoil is more alarming for those who have more immediate needs, such as those contemplating retirement in the next few years or parents whose children are entering college. Retiree Barb Dietrich, a 65-year-old widow from Cedarburg, Wisconsin, is holding firm on her stock investments so far but is getting uneasy about both stocks and the prospect that her Social Security check could be delayed. \"I have a set amount of money and when that\'s gone, it\'s gone. There\'s a little bit more fear as the days go on,\" she said. Aon Hewitt, the Chicago-based human resources firm that tracks movement of money within 401(k) accounts, reported an increase in transfer activity from stock funds to bonds and money markets over the last week. Weight on the mind Eric Davis, 40, who works for a Minneapolis marketing firm, isn\'t shifting his 401(k) funds for now. \"It weighs on my mind — what should I do personally?\" Davis said. \"But it\'s such an unknown. What\'s happening right now, with potential for government default, there\'s nothing you can look back on and say that\'s what the nation did, or what middle-class investors should do. There\'s no template, nothing to learn from.\" Besides moving their money into cash, investors also have been buying gold on fears of a US default. The price of gold topped $1,600 an ounce for the first time last week. And despite all the questions surrounding the government\'s credit standing, investors have still been flocking to US Treasurys. That suggests they are confident the government will continue paying bondholders even if the politicians fail to reach a deal.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today investors run for cover as deadline nears Arab Today, arab today investors run for cover as deadline nears

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today investors run for cover as deadline nears Arab Today, arab today investors run for cover as deadline nears

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Taxi! Transport gets an overhaul

GMT 12:09 2017 Sunday ,24 September

Taxi! Transport gets an overhaul
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Turkey warns of 'security' steps

GMT 12:17 2017 Sunday ,24 September

Turkey warns of 'security' steps
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:11 2017 Saturday ,23 September

Doctor provides advices to families

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday