Experts: panicking could be ultimate downfall for an investor

By By NICOLE ESTAPHAN

Story Created: Sep 29, 2008 at 5:55 PM EDT

Story Updated: Sep 29, 2008 at 7:04 PM EDT

(WKTV) - Should you be worried about your investments in the midst of the current Wall Street woes?

Well, experts say worried is a normal reaction, but panicking can result in the ultimate downfall of an investor.

Financial Advisors at Leigh Baldwin say they have been swamped with calls from worried investors as of late. But while each case is unique, they warn that if you are not close to retirement, now is not the time to make any rash decisions.

In fact, experts say you may be getting stocks at bargain basement prices while the market is as low as it currently is.

If history is any indicator, the stock market will bounce back in the near future. What remains unclear is how much the bailout plan, if passed, will cost taxpayers.

So is there a simple solution that maybe our lawmakers are overlooking?

"Instead of putting the US taxpayers on the hook, we should force the courts to renegotiate and force the banks to renegotiate with homeowners," said Charles Whalen, economics professor at Utica College. "And then everyone should take whatever returns they are given and not worry about taking the huge returns that they anticipated."

Ironically, a similar solution was part of a former version of the rescue package but the banks fought against it.
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