Market Analysts: 'Don't Give in to Fear and Worry'

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There's a glimmer of hope for the struggling U.S. Economy. According to a new federal jobs report, the unemployment rate has gone down slightly.

The Labor Department announced Friday the jobless rate dropped from 9.2 to 9.1 percent in July.

The nation also added 117,000 jobs last month, better than what analysts were expecting.

The jobs increase is positive news in a pessimistic market.

Thursday's 512 point loss was the worst single day on Wall Street since December 2008.

Over the last two weeks, investors have lost around $940 billion.

The average 401k lost nearly $12,000, but the economic uncertainty is not limited to the U.S.

"In the U.S. and in the euro zone, you have basically the same problem now. You have a major debt crisis in both regions," said Martin Hennecke, associate director of the Tyche Group.

"If we think about people that have exposure in the share market, we've basically seen nearly 8 percent of their wealth wiped out in the last three days. Now that starts to impact upon people's retirement plans. It impacts upon their spending. It impacts upon their confidence," explained Bill Evans, chief economist for Westpac Bank.

However, Mellody Hobson, the president of Ariel Investments, is urging people not give in to fear and worry.

"The best thing they could do is not react to the fear and the panic that we've seen in the market, especially yesterday. It would be the worst possible way to affect their portfolios, and they'd be locking in losses," she said.

President Obama says he's pleased with the increase in jobs but more economic growth is needed.

"We need to create a self-sustaining cycle where people are spending and companies are hiring and our economy is growing, and we've known that will take some time," he said.

While discussing the economy, the president also proposed tax credits for companies who hire unemployed veterans.

The government says the unemployment rate for post-9/11 service members now stands at 13.3 percent.

James Sherk, senior policy analyst in labor economics for the Heritage Foundation spoke to about the market signals, job growth, what the government can do to help job growth and if a new stimulus package would help the economy on CBN News' weeknight newscast "Newswatch," Aug. 5.

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Mark Martin is a reporter and anchor at CBN News, covering various issues from military matters to alternative fuels. Mark has reported internationally in the Middle East and traveled to Bahrain to cover stories on the U.S.S. Dwight D. Eisenhower. Follow Mark on Twitter @MarkMartinCBN and "like" him at Facebook.com/MarkMartinCBN.