After the markets closed Monday with the worst one day loss since 2008 on the heels of a downgraded U.S. credit rating, CBS 5 News wanted to find out how the economy's uncertainty could be affecting your daily life.
Gary Gibbons, Ph.D., visiting professor of entrepreneurship at Thunderbird School of Global Management, is an expert in investing and corporate finance with extensive experience in portfolio management, securities valuation, financial modeling, and financial planning and evaluation in entrepreneurial firms. He says, "Everyone will be affected by this."
If you have borrowed money, made any investments, have any real estate, are looking for a job or toward retirement, you could be affected.
Here is what some of you had to say to CBS 5 News Monday about your economic situation.
"I have a lot of debt just being in college and it's hard to pay it all off."
"I've already been laid off. I've already lost my house."
"I'm 60. How long do I have a job? What am I going to do without a job? I'm going to be homeless?"
Gibbons weighs in on some of these concerns, saying, "If you have loans that are variable rate loans like credit cards, a variable home mortgage or a variable rate car loan, those rates eventually will go up over time."
On the other hand, "You're probably going to have the lowest mortgage that anyone is going to have for the next several years," said Gibbons, if you have a fixed rate.
When it comes to the job market, Gary said, "I am really, really nervous about the outlook for jobs."
Meanwhile, the Gibbons says the housing market in the valley was the hardest hit area from the recent downgrade in the national credit score.
"One of the problems with real estate holdings right now is that they have not moved. They are not coming back off their bottoms," said Gibbons.
As for retirement, he says, "If they have a balanced portfolio with good quality stocks and bonds and cash then they will be able to recover."
But don't forget, our market is consumer driver. You may need to be more captious, but the best thing you can do is to keep buying.
There is some silver lining.
Gibbons says now is a good time to invest.
"When everybody else is scared to death, that's usually the best time to wade into the water. When somebody screams shark and there's blood in the water, that's the time to start getting in. People are selling. That's the time to buy," said Gibbons.
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