Local reaction to stock market slump

The stock market slump was on the minds of people, spending their lunch break at Riverside Park, many said they are going to ride things out.

“You invest in what you’re investing in, and the highs and lows will even out over time,” said Laurie Schogren, a local resident.

But those who have significantly benefited from the six years of stock market gains are curious to see how it will impact their businesses.

“I’m a dance instructor, so maybe I’ll see a decline in students, but right now I’ve got the most students that I’ve ever had,” said Lisa Bredahl.

Tom Brewer, a financial advisor said this bad patch in the market could be caused by one of two things. Federal Reserve officials are planning on raising interest rates later this year.

“Some people believe that will slow the economy down, so might be taking money out of the markets,” said Brewer, owner of Brewer Investments.

China’s economy is also a culprit.

“Last night, their markets fell 8.5 percent, which kind of forced a global sell off across the boards,” Brewer said.

Brewer is urging everyone to hang tight for the most part.

“Volatility in the market causes people to make bad decisions,” he said.

But he said there are some things people can do to help their current investment status, like making adjustments to the types of investments they hold.

“If they do have some assets that have grown over the last six years and their portfolios that are a little askew, they may want to rebalance,” Brewer said.

He also advises getting rid of investments where you have lost money.

“They can take a look at tax harvesting. If they do have individual stocks or mutual funds that have fallen in price, they may want to sell those to harvest the tax loss, and they can use those losses to offset gains,” Brewer said.