March 26, 2004 at 11:26 PM CST - Updated June 26 at 10:36 PM
MARCH 26, 2004 -- Posted at: 6:25pm
JONESBORO, AR - Investors drove the Dow Jones industrial average to its biggest point gain in nearly six months. The US stock markets have been down for the last few days. Terrorism has had an impact on some investors' strategies. Investors believe the markets were due for an adjustment, because they've been rising for the last nine months.
"The bombings in Spain have hurt the market. That speeds the process up," said Tim Fitzgerald, Registered Financial Consultant at A.G. Edwards and Sons, Inc.
Terrorism any place in the world effects markets in the United States and other countries. As Americans' fears of attacks here similar to September 11th rise, the markets fall.
Fitzgerald added, "The consumer is what has been driving the economy. The numbers are indicators of how people feel about the economy, what's their emotion about the economy. How likely are they to go and spend money."
Consumer spending rose only two-tenths of a percent; down from the half percent gain in January. Income was up four-tenths of a percent in February up a tenth of a percent.
Tim Fitzgerald said through all of the terrorism the world has endured, most of his clients have stuck with their investment plan. Similar to Burnis Posey's strategy.
"I don't look at the stock market as a short term type thing," said Posey. "I would look at it for the long haul."
Fitzgerald admitted, "For me to say OK after a terrorist attack, you need to sell your stuff and get out of the market, you know, you can't say that, because that's not a good investment philosophy."
Tim Fitzgerald told us his clients who got out of the stock market after September 11th now wish they hadn't. If they had stayed in, they would have received a 30% return on their investment.
"I think we'll look back in history and look back at these times and say that they were tough, but we got through them and we're a lot higher now," said Fitzgerald.