Default Would Have Damaged Stocks and Investments - WBOC-TV 16, Delmarvas News Leader, FOX 21 -

Default Would Have Damaged Stocks and Investments

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WICOMICO COUNTY, Md. - The stock market finished on a high note on Wednesday as talks of a potential deal to avoid the default spread throughout Washington.  In Wicomico County, financial experts were stressing the importance of avoiding default because of the negative impact it would have on the stock market and personal investments.

Roy Geiser is from Salisbury and a working professional.  He has a wife and two kids at home.  Like many of us, he puts away money monthly as part of his retirement plan.  But like many others, Geiser was concerned what a default would do to his long term goals.

"It's a real, very real concern.  Many years ago many people lost a lot of money, you know, in the stock market when it crashed, and it could happen again," Geiser said.

Mark Welsh is a Certified Public Accountant for the TGM Group in Salisbury.  Welsh was confident that a default was not going to occur, but if it ever did become a reality, it would mean a downturn in the stock market.

"It'll be pretty dramatic.  The futures will turn negative.  The stock market opens, everything will be heading downward.  At that point there won't be much you can do," Welsh said.

Welsh went on to say that the negative slide of the stock market would be short-lived because he believes a deal would be reached quickly in Washington.  From there, he said the stock market would react accordingly and begin to turn around.  How fast the turn around takes place would dictate how long it would take for someone to recover potential losses from long-term plans like 401ks and IRAs.


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