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Traders work on the floor of the New York Stock Exchange during morning trading on Aug. 11. The Dow is moving through a wild week as global economic turmoil continues.
Today is the Friday ending the first week ever, in history, that the Dow vacillated by more than 400 points for four days in a row. After the Standard & Poor’s downgrading of the U.S. credit rating on Friday, investors began panicked selling globally. And yet, on Tuesday and Thursday, when the Dow went back up significantly, it appears some investors saw an opportunity to buy while markets were cheap. This alternation of backing off and jumping in has resulted in the Dow changing directions each day for the past seven trading sessions. With this kind of volatility, what is the best way for the small investor to respond? How long is this extreme back-and-forth likely to continue? We’ll be talking to a financial advisor and taking your money questions.
Ken Winans, president and portfolio manager, Winans International, a registered investment advisor