The University of Iowa
The University of Iowa News Services Home News Releases UI in the News Subscribe to UI News Contact Us

 

CONTACT: GEORGE McCRORY
100 Old Public Library
Iowa City IA 52242
(319) 384-0012; fax (319) 384-0024
e-mail: george-mccrory@uiowa.edu

Release: Immediate

MEDIA ADVISORY

UI SOURCES:

STOCK MARKET PLUMMETS

Reporters and editors looking for commentary on U.S. stock markets as the Dow Jones Industrial Average plummeted more than 500 points Monday may contact the following University of Iowa experts:

Anand Vijh, associate professor of finance, may be reached at (319) 335-0921. According to Vijh, the stock market could not sustain its high values, and therefore a correction was imminent. Not only did uneasiness about international markets contribute to the slide, he said, but "negative psychology" among investors was a factor.
But he advised individual investors to sit tight and not leave the market. "If you get out now, you might not have the chance to get in when the market makes a comeback."
Vijh said that although the bull market was unsustainable, the U.S. economy is still in good shape.

Timothy Loughran, assistant professor of finance and an expert on stock market trading, may be reached at (319) 335-0882.
"It was amazing how quickly the market declined this afternoon," he said, noting the market's slow decline in early trading and its later rapid fall. "The technology stocks got creamed." Loughran noted that the Russian financial crisis affected stocks across the board, including technology stocks that ostensibly shouldn't be affected by foreign markets.
"Everyone will be looking closely at tomorrow's opening to see if the average Joe investor will panic," Loughran said.

Robert Soldofsky, emeritus professor of finance and expert on TIAA/CREF funds, may be reached at (319) 337-9480.
He advises UI employees to maintain a 50/50 split between TIAA and CREF and not to make any immediate changes in their retirement funds. "I'm saying 'steady as she goes.' What happened today is likely to look like a blip. The '87 crash also looked like a blip, looking back after 12 years," he said.

9/1/98