The wild drop on Wall Street Monday may push even more nervous investors to sell stocks, but a Dallas money manager for some of the wealthiest people in North Texas is urging his clients to be patient, not panic and stay the course.
"Anybody who locked in their losses was a fool," said Ed Butowsky, founder of Chapwood Investments. "Not only am I optimistic, I'm right."
Butowsky, whose clients include professional athletes, predicts the market will rebound within weeks.
He also blamed Monday's drop on computerized trading and an overreaction to S&P's downgrading of the U.S. government's credit rating on Friday.
"The way you price stocks is not on the credit rating of the United States government," he said. "Stocks are priced based on expected earnings. And it's real simple. Stocks right now are about 35 percent undervalued based on next year's earnings. That's all that matters. Game over."
On the streets of Dallas, the unease reflected the mood nationwide.
"We are in a period we've never been before," said a shopper in Dallas' trendy Uptown district.
"I just hope our government can learn to work together," added another.
But many shoppers said they were hopeful of a quick turnaround.
"In Dallas, we've got business thriving," said one woman. "People are buying and selling. I just think we all need to let this run its course."