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CNN Live At Daybreak
How Are Investors Feeling?
Aired July 27, 2001 - 08:19 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COLLEEN MCEDWARDS, CNN ANCHOR: And, of course, the earnings reports -- or maybe we should say nonearnings reports, like that loss by JDS Uniphase that Amanda talked about -- they kept stocks wallowing through this summer. A lot of portfolios and 401(k)s have lost value. A lot of retirement plans are being revised.
Chris Huntington of CNN Financial News is checking in on those losses, talking with commuters this morning at Penn Station in New York.
How are people feeling?
CHRIS HUNTINGTON, CNN FINANCIAL NEWS CORRESPONDENT: Well, so far people have told us that they feel -- they feel the pain but they are sticking it out for the long haul. And I'm joined right now by actually a couple of folks who know an awful lot about the business environment from the ground up.
Shelley Kennedy (ph) and Kristen Gant (ph) are both management consultants.
And, Shelley, let's start with you. You work with companies to try and advise them on how to get their businesses going right. What are you seeing on the -- at the grassroots level in the economy right now?
SHELLEY KENNEDY, MANAGEMENT CONSULTANT: I think in a grassroots sense most people are waiting because we hear some things from the newspapers, we see things in the market, it goes up, it goes down. People right now, in terms of what I'm thinking and seeing, are holding on to what they have and trying to make prudent investments instead of going for things that look like quick fixes.
HUNTINGTON: Right.
And, Kristen, I understand that you both work primarily with technology companies which, as we all know now, have taken a real hit in the last year or so.
KRISTEN GANT, MANAGEMENT CONSULTANT: Well, actually, a lot of our companies cover technology companies as well as financial institutions and other industries around the -- across the board. But what I've been seeing is that a lot of job starts, new engagements, technology initiatives have pretty much taken this big deep breath. They're holding their breath. A lot of deferrals in job starts. And now, just now, actually over the past three weeks or so, I've seen an actual start. The breath has been let out and people are starting to get back on just on cue.
KENNEDY: Right. It's like the economy's been waiting to exhale.
GANT: Right.
HUNTINGTON: Are you truly seeing new hiring in these companies?
GANT: I wouldn't say new hiring. I think the hiring is on hold and I guess, as working for Jefferson Wells, we're in a special position where people are turning toward -- more toward...
HUNTINGTON: OK.
GANT: ... consulting at this point. So it's more of the strategic initiatives that they're getting going back on to so not necessarily starting the hiring.
HUNTINGTON: OK, we've got to wrap.
Very quickly, just how have you fared in the stock market? Very briefly.
GANT: You don't want to task me.
HUNTINGTON: OK -- Shelley.
SHELLEY: Well, I believe in diversification and I diversified a long time ago so I'm OK.
HUNTINGTON: OK. All right. Well, a couple of pros sticking with the market but feeling the pain like everybody else -- Colleen.
MCEDWARDS: Nice try there, Chris.
LIN: Yes. Holding on for the long term, that's what we're doing.
All right.
We asked you how your portfolio was doing. The question today on "Your Turn" is: How much have you lost in the stock market?
MCEDWARDS: And you've been forthcoming -- more forthcoming than we thought just there. So let's take a look.
Andre Boyer from Toronto says, watching your show, could not resist but to tell you I've lost 80 percent of my tech stock value since that fateful day back in March 2000.
LIN: You have our sympathies.
But Lester Johnson says, how much have I lost on the stock market -- nothing. MCEDWARDS: Must not be in it.
Celeste Bistro -- ladies, between stocks and funds, I've lost around $30,000.
LIN: And Tracy Lee says, I've lost approximately $60,000. I've had to second mortgage my home. I only make about $20,000 a year in income. I'm still invested and always will be until the day I die. The stock market is the only place to put your money, or to lose it.
And, of course, the adage is, you know, you don't lose until you sell.
MCEDWARDS: Yes that's right, so hold on -- tough times.
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