Dave Ramsey Responds to Dow Jones Dips

nasdaq_studio

So much for stabilizing the markets with a Federal Reserve promise to keep interest rates low. Europe’s debt problems are sending a ripple effect through U.S. stock markets.

The Dow Jones Industrial average declined 519 points, or 4.6 percent, on Wednesday. The dip marks the third time in the last five trading days that the Dow has lost more than 500 points. Meanwhile, the Nasdaq dropped 101 points, or 4.1 percent, and the S&P 500 is down 51 points, or 4.4 percent.

But now is no time to panic. So says Dave Ramsey, a nationally syndicated radio show host discussing personal finance topics. Ramsey has launched what he calls “The Great Recovery,” a grassroots movement spread by people who are tired of looking to Washington for answers.

“I know that the recent media coverage about the economy and the fall in the stock market scares investors, but the smartest thing you can do right now is hold on to your investments. Do not cash them out. That's what I'm doing,” Ramsey said in an email sent to Charisma News.

Ramsey has a lot of money invested in the American economy through growth stock mutual funds. But despite the fears on Wall Street this week, he is not touching those funds. Rather, he says he’s riding the market roller coaster to the very end.

“People who make money in the stock market are the ones who think long term and don't jump in and out based on the market fluctuations. Market timing is trying to predict when to add or withdraw your money in the market. Historically, it doesn't work,” Ramsey says. “After all, the only way to get hurt on a roller coaster is to jump off! However, staying invested ensures that my investments won't miss those best-performing days.”

Ramsey takes a long-term view. As he sees it, people who hold on to their current mutual funds will look like geniuses 10 years from now. Even if you’re almost old enough to retire, he advises people not to cash out now.

“I understand you're scared, but think this through. If you're 65 years old at retirement, you’re not going to take all of your money out at one time,” Ramsey says. “You will gradually take money out of your accounts and over the course of your retirement, your money will still have time to grow.

"So, even if you want to retire, you're better off leaving your 401(k) or IRA alone. Keep thinking long term. That's what I'm doing. I'm not cashing out. I believe the market and my mutual funds will be okay. And 10 years from now, it will have been a great decision.”


To contact us or to submit an article, click here.


Get Charisma's best content delivered right to your inbox! Never miss a big news story again. Click here to subscribe to the Charisma News newsletter.

Five ways to deepen your relationship with God, increase your faith and save money!

  • Deepen Your Relationship with God with a FREE eCourse: Click Here to view all of our free e-Courses. Favorite topics include Fear, Forgiveness, Holy Spirit, Supernatural, and How to Hear God.
  • Super Discounts and Close-Out Specials: Click Here to view all our bundles and close-out specials and save up to 86%! Prayer, Holy Spirit, Anointing, the Supernatural and more.
  • God Wants to Anoint Women Now: Rise up and enter the anointing of Deborah, Anna, Esther, Ruth and Hannah. You were called to go higher. Click Here to learn more.
  • Change Your Atmosphere and Circumstances Through Prayer! John Eckhardt's prayer bundle gives you six powerful books to help you pray and change any situation. Click Here.
  • HUGE Bible Sale!: Click Here to save up to 50% off a great selection of Bibles. Plus, get a free gift with each order!

Subscription Special: Subscribe to Charisma for Only $24.97 and get a free gift. With your subscription, you'll receive Born For Significance by best-selling author Bill Johnson. View Offer

Attention Pastors and Leaders: Leadership training and development are crucial for success. Enroll in a FREE 1-hour leadership mini-course by Dr. Mark Rutland. View Details

Charisma News - Informing believers with news from a Spirit-filled perspective