Financial advisors remind us to think long-term - WDRB 41 Louisville News

Financial advisors remind us to think long-term

Wall Street opened the second half of the year with a big selloff early in the day.

But numbers show U.S. manufacturing activity has grown for the first time in five months in June.  And by Tuesday's end, investors were doing some buying after the Dow had been down by triple digits.

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The Wall Street Journal is calling it a bear market. The first six months of this year have been some of the most difficult in nearly forty years.

But unless your investment goals are very short-term to immediate, advisors remind us to think long-term.

Paul Dorroh of Hilliard Lyons tells Fox 41's Don Schroeder, "There's no guarantee that the some of the prices may go a bit lower, but if you decide you got faith in the long-term nature of investing, you just keep on your program."

But Dorroh also believes the combination of the pullback in the market, and being at the mid-point of the year, is a good time to assess where your money is:  "Mid-year is an excellent time to sit back and reflect and really see where you are, more importantly where you're going. Life is a very long journey and six months or two years is just one piece of that.

A big part of the stock market's problems has been based in the sub-prime mortgage mess --a mess that is slowly being cleaned up.

Dorroh explains, "Our U.S. banks and some overseas banks were making loans they probably shouldn't've made.  And got overextended, many borrowers got overextended, so we've really seen a pullback in the housing markets, everybody is aware of subprime issues, but it seems like the regulators and the industry in general are starting to clean up their act."

And aside from the financial industry and housing, Dorroh believes many companies are in a good position.  "In terms of the stock market as you look at many, many U.S. based companies, and most well known international companies, they've done a pretty good job over the last few years of getting their financial condition in pretty good shape....There's many, many companies that are in a financial condition to weather whatever storm the economy brings. In my opinion they're stronger now than many times in the past."

Because of the condition of many U.S. companies, Dorroh believes long term, the stock market looks reasonable with a bright future.

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Jobless rates have increased in 108 of Kentucky's 120 counties over a one-year period ending May 31st.

The Kentucky Office of Employment and Training reported lower unemployment rates in the other 12 counties, with Woodford County having the lowest jobless rate at 4.6%.

Jackson County had the highest at 11.3%.

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