Last month’s cut in interest rates may be a break for stockbrokers and borrowers, but people who save money will see it earning even less interest now. Stockbroker Steve DeVenney says you might expect to see people taking their money out of things like old-fashioned savings accounts, since the payoff will be virtually nothing.For the first time in a decade, people are putting much more money into bank passbook savings than stock accounts. De Venney says the past year’s gyrations in the stock market have cut confidence in the market and people The attitude’s pessimistic, though that could mean a good time for some investors to come back into the stock market. De Venney says it’s probably a good time to search for stocks that are priced low, since the market is still in a reaction to the fast increases of the late nineties.It’s been a bear market for eighteen months and shows no sign of coming out. The Iowa stockbroker says from the fourth quarter of 1998 to the first quarter of 2000, the market made huge leaps.In a year and a half, the NASDAQ went from 1350 to nearly 5100, so there were excesses and it’ll take time to recover. De Venney says the same thing happened in the early to mid 1970’s and also took time for the stock market to recover from the resulting downturn.
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