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October 16, 2007

Stupid PR pitch of the day

WASHINGTON, D.C.///October 4, 2007///In two weeks, the “Black Monday” stock market crash of 1987 will mark its 20th anniversary. As that date draws near, leading financial advisors are cautioning U.S. investors against giving in to the fears and trepidations that such a milestone can trigger, particularly in the wake of the rollercoaster stock market ride of this past July and August.

In a news conference organized today by the Zero Alpha Group (ZAG), three top U.S. financial advisors -- Glenn Kautt, president, chairman and chief investment officer, The Monitor Group, Sterling, VA., Kimberly Sterling, president, Resource Consulting Group, Orlando, FL., and Ed Green, partner, Foster Group, West Des Moines, IA. – explained why investors should resist the anxiety associated with a dreaded anniversary. In response to questions from clients and a recognition of the need to address investor fears that may not end up getting articulated other than through panic, the financial advisors detailed several different ways that the financial world of 2007 differs from and resembles that of 1987.

Glenn Kautt, president, chairman and chief investment officer, The Monitor Group, Sterling, VA., said: “It is entirely normal for investors – or any human being for that matter – to reflect on a dark date as it draws close. Americans have done this over and over again with such anniversaries as Pearl Harbor and 9/11. When it comes to the 20th anniversary of ‘Black Monday,’ the trick is to get out of the trap of obsessing about every up and down in the market. You are much better off framing a long-term plan and then sticking with it, leaving the stock market to gyrate as it does now on a regular basis. In the final analysis, that is the best prescription for anyone suffering from anxiety about the return of ‘Black Monday.’”

Posted by Jay Hancock at 10:32 AM | | Comments (1)
Categories: Stupid PR pitches
        

Comments

So long as Treasury doesn't try to manipulate the dollar on Monday, I doubt we'll have a return to Black Monday.

Twenty years ago there were efforts to push the dollar down, which were largely responsible for the crash. Of course, the Fed acted, unlike what happened in 29, and the crash of 87 didn't really have the impact of previous crashes.

Of course, many of the people who are driving the market today couldn't drive a car in 1987, so they probably won't rememember much of anything about the crash.

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About Jay Hancock
Jay Hancock has been a financial columnist for The Baltimore Sun since 2001. He has also been The Baltimore Sun's diplomatic correspondent in Washington and its chief economics writer. Before moving to Baltimore in 1994 he worked for The Virginian-Pilot of Norfolk and The Daily Press of Newport News.

His columns appear Tuesdays and Sundays.
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