As Markets Plunge, Fear Rules Day
Clients Flood Financial Planners,
Asset Managers With Calls as Stocks Swoon;
‘It’s a Losing Battle’
By MARY PILON And JEANNETTE NEUMANN
Clients called financial planners from the golf course. Sell orders piled up. Bargain hunters made bets that Thursday’s 512.76-point drop by the Dow Jones Industrial Average was the end of the stock market’s recent swoon.
The moves showed how much individual investors were whipsawed by the worst one-day point drop for the Dow since Dec. 1, 2008. While the Dow’s decline of 4.3% was nowhere close to the worst days of the financial crisis, it felt bad enough.
“I’m getting the calls about whether this is 2008 all over again,” said Garth Scrivner, a financial planner at StanCorp Investment Advisers Inc. in Albuquerque, N.M.
Many of his clients are retirees still reeling from the crisis. “We told clients that we thought some of the debt-ceiling stuff was overblown,” he said. “Now, we’re starting to see the effects of some of these policies, and it doesn’t look good.”