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Coping
with Tragedy and Personal Financial Issues
As
our nation attempts to recover and rally together in response to
recent tragic events in New York City, Washington, D.C. and
Pennsylvania, financial markets have become even more volatile
than before. And while your gut reaction may be to cut your
losses, at OppenheimerFunds we believe that your focus should
remain on your previous long-term financial plans and goals.
Nobody
knows what tomorrow may bring, but we can look at the markets'
history during past crises for some reassurance and to help us
gauge what may occur.
American
Market History During Crisis
During nearly every recent major event in American history,
worried investors selling their investments initially lowered
stock prices. Once confidence was restored, either by the passage
of time or as a result of government action, the market rebounded
and nerves calmed.
- After
the start of the Korean War in 1950, the Dow Jones Industrial
Average (DJIA) dropped 12.0% over the course of 20 days. Three
weeks later, it had gained back 9.1% and three months later,
it was up 19.2%.
- Following
the assassination of President Kennedy in 1963, the DJIA
dropped 2.9%. Twenty-two days later, the average had risen
7.2%.
- During
the U.S. invasion of Kuwait and Gulf War crisis in late 1990,
the DJIA fell 4.3%, but within a few weeks, it rebounded
nearly 20%.
Confidence
from Federal Financial Officials
"The U.S. economy is strong enough to survive the
short-term impact of the worst terrorist attacks in U.S.
history," Federal Reserve Chairman Alan Greenspan told
Congress Thursday, 9/20.
While
nobody can control the markets, and nobody knows how they will
perform in the weeks to come, measures are being taken to
provide support:
- After
the September 11th attack, the Fed cut short-term interest
rates by 50 basis points - the eighth rate cut this year.
- The
U.S. Congress sent a $40 billion relief package to
President Bush,
which he signed shortly after the attack.
- Stock
prices were significantly lower on September 17th and
despite large volume and heavy sell orders, the markets
operated in an orderly fashion with no significant
problems reported.
The
Big Picture
Market volatility is not easy for any of us.
Don't go it alone and make hasty, emotional decisions,
which could take your long-term financial plan off course.
It is important to stay focused on your long-term plan
and goals, review the diversification of your portfolio
allocation, and talk to your financial advisor whenever you
have questions.
Reprinted
with permission: OppenheimerFunds
Mutual Fund Company www.oppenheimerfunds.com
A Little Bit Of History
“The History
Channel”
Women
in the 1500’s cooked in the kitchen with a big kettle that
always hung over the fire.
Every day, they lit the fire and added things to the pot.
They ate mostly vegetables and did not get much meat.
They would eat the stew for dinner, leaving leftovers in
the pot to get cold overnight, and then start over the next day.
Sometimes, the stew had food in it that had been there for
quite a while.
Hence, the rhyme, “Peas porridge hot, peas porridge cold,
peas porridge in the pot nine days old
Sometimes
they could obtain pork, which made them feel quite special.
When visitors came over, they would hang up their bacon to
show off.
It was a sign of wealth that a man “could bring home the
bacon.”
They would cut off a little to share with guests and would
all sit around and “chew the fat.”
Those
with money had plates made of pewter.
Food with a high acid content caused some of the lead to
leach into the food, causing lead poisoning and death.
This happened most often with tomatoes, so, for the next
400 years or so, tomatoes were considered poisonous.
Most
people did have pewter plates, but some had trenchers, a piece of
wood with the middle scooped out like a bowl.
Often, trenchers were made from stale bread, which was so
old and hard that they could use them for quite some time.
Trenchers were never washed, and a lot of times worms and
mold got into the wood and old bread.
After eating off wormy, moldy trenchers, one would get
“trench mouth.”
Bread
was divided according to status.
Workers got the burnt bottom of the loaf, the family got
the middle, and guests got the top, or “upper crust.”
| Does
the word “hippology” look strange?
It does not have anything to do with a hippopotamus.
It comes from the Greek language – ology meaning
“the study of” and hippo, the word for “horse.”
Now you know!
Hippology is the study of horses. |
Acting
Commissioner Massanari Talks About Direct Deposit
In
response to recent concerns about our nation's mailing system,
Social Security's Acting Commissioner, Larry Massanari, issued a
statement.
"I want to assure the American public that these
incidents have not adversely affected the payment of Social
Security or Supplemental Security Income (SSI) benefits."
"For
those who have concerns, I want to encourage them to use the most
convenient and safest way for beneficiaries to receive their
payments -- Direct Deposit."
Direct deposit eliminates concerns about delayed mail.
It eliminates the need for frequent trips to banks;
payments are deposited automatically into accounts and are readily
available for immediate use.
There is no need to wait in long lines to cash a check or
to worry when a visit to a bank is difficult to make.
With direct deposit, the possibility of a stolen check is
removed.
"At
the Social Security Administration, we understand that recent
incidents have raised concerns about changes in the way we have
traditionally lived our lives.
We are doing everything that we can to make sure our
service is as dependable now as it has been for over 66
years."
http://www.ssa.gov/pressoffice/direct-deposit-pr.htm
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Mailing Service
If you are interested in having this
newsletter mailed to you, please contact us:
University of Missiouri Extension Center of Callaway County
5803 County Road 302, Fulton, MO 65251.
callawayco@missouri.edu
Tel: (573) 642 0755
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