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This past Sunday after we spoke the federal reserve cut its rates to nearly zero it also announced it would buy at least seven hundred billion dollars in government bonds move known as quantitative easing to try to keep markets from locking up the stock markets were not mollified they fell another twelve percent on Monday let's face it if we're not transacting with each other for some long period of time that will take a toll on me think about the airlines if the airlines aren't making any money for a while and can't run their routes that's gonna affect lots of businesses and all of that's going to go down for a while now the thought is of course that assumes everything jumps back up the airlines can kick start and start flying again if that takes some time it may take a little bit longer to recover but I'm hopeful that won't be the case the last time we saw the stock market meltdown like this was after the the financial crisis began to really gather steam and what we saw was a lot of investors institutional but a lot of individual investors really panicked when the markets ended up falling and many people sold low and then as the recovery started they ended up buying high I think we all understand the emotional component of that especially for people who were little bit older and they just want to preserve the capital as a finance person who's seen a few of these rises and falls now over the past few decades do you have any general advice for people yes a very specific advice don't touch it one of the basic findings from economics as UConn out think the market anytime people try to time the market they end up doing far more damage than they help themselves it's very difficult to do as one example I had many colleagues these are famous economists who said last week I'm buying a buying like crazy this'll be a blip they're all sorry they did here's one of the shocks because the other side of that trade is causing more street that you know eat for lunch retail investors like us they don't really know what we're doing so I have always done and I'm not the only financial economist will tell you this many of us would is you have a long term strategy you stick to it and you can't be blind sided or emotional about the short term blips because you can't really do much about them so the best advice is actually not.

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