Stocks Plummet, Rebound In One Of Most Volatile Days
It's been one of the most volatile days in stock market history. Within minutes and without warning, the Dow plummeted nearly 1,000 points, and economists are still trying to figure out exactly what caused the plunge. A big reason for the intense sell-off is the financial crisis in Greece, and the possibility of it spreading. There was also word of some possible technical problems on Wall Street. Shortly before U.S. stocks tanked, the Greek government voted to cut pensions and raise taxes in efforts to avoid bankruptcy. Technical computer selling intensified the drop as investors watched protests in the streets of Athens. One Northern Michigan financial advisor has been predicting a market fall since early this year. Dennis Prout, owner of Prout Financial Design in Traverse City, has been advising his clients to be more conservative, especially those thinking about retiring. Prout says the market has been steadily rising since March of 2009, and was due to correct itself. He says prices have gone up way too much, and the European debt crisis was likely the news that sparked the right-sizing. Prout says only time will tell how the market will perform in the coming days, but says a dive like today's is a possible warning sign for more trouble. Erika Waddell and photojournalist Justin DePrekel have the story.