The ups-and-downs on Wall Street this week are making some investors skittish. Ernie Goss, an economist at Creighton University, says corporate investors are not pricing in much risk right now. Goss says risk was a big part of what happened in the China market earlier this week and then the U.S. market reacted.
Goss says "I don’t think our market was overpriced but, none the less, we may still see some downturns in the near term but overall our economy remains very healthy and our stock market will be healthy but again, there could be some losses in the weeks and months ahead." Goss says there is no way to determine what the outcome will be, but he adds, the market is not all doom and gloom.
Goss says "There could be some real downturns as money moves in and out of the market but in the long term there will be some real good investment opportunities. Sort of like when the price goes down in the department stores, a good time to buy but you could lose some money in the short term though." He says the housing market is really pulling the economy down right now and the loans that go along with it. Goss says there is a lot of money out there and some loans are very risky. He says both long and short-term interest rates remain very good and the job market remains strong.
Goss says "In terms of borrowing for individuals out there, it’s still good, except for some of the sub prime lenders who are going to be getting much more rigid in terms of loaning but overall the economy moves ahead. We’re going to see a pretty good job market and in this part of the nation, it’s all about ethanol and farm income." On the housing, Goss says it’s really a "buyer’s market," especially for first-time homeowners. He says interest rates are very competitive and down-payments are low.