Steve Edmonds prefers to think of Wall Street's latest slide Wednesday as an opportunity even as the Dow Jones industrial average tumbled 317.34 points, the Nasdaq composite shed 42.69 and the Standard & Poor's 500 index dropped 30.95.
A long-term outlook will do that.
Financial news keeps the attention of Steve Edmonds, branch manager for Robert W. Baird & Co. Inc. in Lawrence. From his office, Edmonds tracked Wednesday's market slide amid fears of economic slowdown in the United States.
"This is about the only business in the world that when products are on sale, people don't buy them," said Edmonds, branch manager and senior vice president for investments at Robert W. Baird & Co. Inc. in Lawrence. "If things were on sale for 10 percent off at the grocery store, you'd buy. Now the market's down 20 percent, and people aren't buying.
"Things are on sale for 20 percent off. Now's not the time to get out, for long-term investors. This is a time to take advantage of the weakness."
Edmonds and several other financial advisers in Lawrence worked the phones, followed returns and crunched market data all day Wednesday, as fears of a slumping global economy sent investors reeling on Wall Street.
In the meantime, Edmonds and others offered some broad advice to help people find silver linings in what has become a dark cloud hovering over Wall Street:
l Buy low. "This is the 'buy low, sell high' proverb," said Dave Mattern, investment representative for Edward Jones, 3025 W. Sixth St. "There are a lot of great buys out there."
A solid company that commands a solid market share, shows profits or is poised for growth at the expense of weaker competitors could offer fertile ground for buying.
Intel ended Wednesday near $29, after reaching $75 a year ago; Cisco Systems closed at $20.25, after hitting $82 last year.
While brokers said they couldn't recommend particular stocks, they noted a common concept: If you considered buying the stock at its height a year ago, couldn't you buy more at the lower price?
"It's just a better buy at a lower price," Mattern said. "Avoid stocks that are priced for perfection, and buy better-quality, better-valued companies."
l Employ "dollar cost averaging." Invest an equal amount of money on a consistent basis say, the beginning of each month into a particular stock or set of stocks.
Not only does it take the emotion out of buying, but it also ensures that you buy more of the company when its price is low and less of the company when its price is high, said Peggy Johnson, a certified financial planner for American Express Financial Advisors, 601 Mo.
"The good news is for those who are adding money weekly, monthly whatever they are getting some decent buying opportunities right now."
l Avoid selling. Keep in mind that actual losses only come with a sale. Holding a stock that has lost value means keeping a chance to regain the value if and when it rises again.
"If you sell when it's down, you're just locking in your losses," Mattern said.
But if a fallen stock rallies, it may offer a chance to sell and diversify a portfolio, Edmonds said.
People that are too heavy into technology companies may want to consider expanding into energy, finance or health care, he said. Also consider certificates of deposit and other levels of risk.
"I do believe in technology and innovation, but you don't want all of your money there," Edmonds said.
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