CONTACT: GEORGE McCRORY
100 Old Public Library
Iowa City IA 52242
(319) 384-0012; fax (319) 384-0024
STOCK MARKET PLUMMETS
Reporters and editors looking for commentary on U.S. stock markets as
the Dow Jones Industrial Average plummeted more than 500 points Monday
may contact the following University of Iowa experts:
Anand Vijh, associate professor of finance, may be reached at
(319) 335-0921. According to Vijh, the stock market could not sustain its
high values, and therefore a correction was imminent. Not only did uneasiness
about international markets contribute to the slide, he said, but "negative
psychology" among investors was a factor.
But he advised individual investors to sit tight and not leave the market.
"If you get out now, you might not have the chance to get in when
the market makes a comeback."
Vijh said that although the bull market was unsustainable, the U.S. economy
is still in good shape.
Timothy Loughran, assistant professor of finance and an expert
on stock market trading, may be reached at (319) 335-0882.
"It was amazing how quickly the market declined this afternoon,"
he said, noting the market's slow decline in early trading and its later
rapid fall. "The technology stocks got creamed." Loughran noted
that the Russian financial crisis affected stocks across the board, including
technology stocks that ostensibly shouldn't be affected by foreign markets.
"Everyone will be looking closely at tomorrow's opening to see if
the average Joe investor will panic," Loughran said.
Robert Soldofsky, emeritus professor of finance and expert on
TIAA/CREF funds, may be reached at (319) 337-9480.
He advises UI employees to maintain a 50/50 split between TIAA and CREF
and not to make any immediate changes in their retirement funds. "I'm
saying 'steady as she goes.' What happened today is likely to look like
a blip. The '87 crash also looked like a blip, looking back after 12 years,"