JONESBORO, AR (KAIT) - The close of the day on Wall Street signified one of the worst in the nation's history as the DOW fell 504 points sending investors into a panic.
"People should be concerned, but people should not be worried. If they are worried, it means they were not properly invested in the first place. If they are concerned that is normal," said Mark Rowe of Wachovia Securities.
He says Monday's drop was one that nobody likes to see. The reason for the tumble was mostly due to corporate failures. After 158 years in business, one of the country's biggest financial groups "Lehman Brothers" officially filed for bankruptcy.
"If you are a shareholder, or if you have loaned them money by buying bonds you are going to be damaged by that," said Rowe.
He says even though this will greatly effect short-term trading, it may not be the worst thing that could happen long-term.
"That's part of the healing process of the market. We've got to get the problems behind us. Having Lehman fail, that was one of the problems we needed to have come on out in the public," said Rowe.
Lehman Brothers wasn't the only company taking hits though. Bank of America bought out Merrill Lynch for a price tag of 50-billion dollars--that's nearly half of its net-worth a year ago.
Other companies adding to the trading panic include insurer A.I.G. which is now asking for emergency funding to shore up it's balances. So what about those 401-k's and other investments you may have? Financial planners say simply ride it out.
"I'd be surprised if we have a rebound tomorrow and all of the problems go away in one day. I think it's going to take a little while to work through this. If you ask me, in a year from now or five years from now, will we be better off? I think the markets going to get over it, and move on again," said Rowe.
Analysts say the most important thing you can do when the nation is suffering financially is use your brain, and make investment decisions rationally rather than emotionally. They say an emotional decision is one that could cost you even more money in the long run.
Monday's collapse was the biggest point fall since the attacks on the World Trade Center back in 2001.