Tags: Steve Beaman | stock market | europe | investing

Steve Beaman to Newsmax TV: Don't Freak Out Just Because Stocks Are Down 1 to 2 Percent

By    |   Tuesday, 27 January 2015 06:04 PM


The S&P 500 index dropped 1.3 percent Tuesday amid weak earnings reports, but that's no reason for investors to lose their cool, Steve Beaman, chairman of the Society to Advance Financial Education, told Newsmax TV.

"A first rule of investing is never panic," he told the network's "MidPoint" show. "What you get on market moves like this of 1 or 2 percent up or down is people going, oh my gosh, the sky is falling, or it's always going to be good."

But the reality is that markets fluctuate, Beaman said. "You want to keep your investment process the same regardless. You want to act objectively and look at the reality of the positions you have and how they've changed, not just these trading moves in the markets."

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As for Tuesday's move, "this is a small drop, so assets are down about 1 percent," Beaman said. "They'll come back as the economy continues to dynamically move forward."

But the economy does face obstacles. "You've got three big themes going on around the world," Beaman said.
  • "A rising dollar which makes our exports more expensive;
  • "Turmoil in Europe that's being caused partly by a slowdown in oil prices;
  • "The economic malaise in Europe and the slowdown in China."
As for Europe, the new government in Greece looks set for a battle with its neighbors over the restructuring of its debt. "We have to appreciate the European Union has struggled since inception, trying to bring it together as a stable economic and political force," Beaman told the "America's Forum" show on Newsmax TV.

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"When you take the Greek situation now and the election of this very radical government together with the Swiss taking their currency off of its ceiling against the euro, you start to look at the entire European Union and wonder where it's going to end up."

So will the eurozone remain viable?

"That's the billion dollar question," Beaman said. "The euro has slid dramatically against the U.S. currency [to an 1l-year low], against the Swiss franc and others. . . . The instability factor of Europe is expanding greatly, and that will cause consternation to the U.S. markets."

What can we expect going forward in Europe?

"You're going to see the European Union feeling out this new government to see if they're sincere about their desires to dramatically affect that repayment of the debt," Beaman said.

"If they do, you could see the European Union come together almost on an emergency basis with the European Central Bank and talk about how they're going to handle this little brother down in the Greek Islands that doesn't want to play ball. You could see a real fragmentation in the entire European Union because of this."

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The S&P 500 index dropped 1.3 percent Tuesday amid weak earnings reports, but that's no reason for investors to lose their cool, Steve Beaman, chairman of the Society to Advance Financial Education, told Newsmax TV.
Steve Beaman, stock market, europe, investing
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2015-04-27
Tuesday, 27 January 2015 06:04 PM
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