Thanks to Tom Lauricella from the Wall Street Journal article “Stocks Nose-Dive Amid Global Fears” on page A1, August 5, 2011.
On Thursday August the 4th stocks continued to fall across the board. This is the worst point for stocks since the financial crisis of December 2008. The dow fell over 512 points and nothing seemed to go unscathed . Even gold, which until now has gotten out of this crisis unscathed even fell dramatically. With this turn of events in mind New York Mellon Bank has instructed large clients that they will be forced to pay money to keep their stockpiles of cash with the bank. This is an unprecedented move by a bank. The only reason large institutions are keeping large sums of money at the bank is because they are wary of investing in the ominous market.
What does this mean for you?
If you have your money invested in the stock market or a mutual fund now might be a good time to meet with your financial advisor.
Consider at least taking a good portion of your money out of especially risky stocks and keep the money in a secure account guaranteed by the Federal Government.