Trading specialist Christopher Culhane works at his post on the floor of the New York Stock Exchange on as the market drops.
(AP Photo/Richard Drew)The market meltdown Monday erased nearly $2.5 trillion from global equities, including more than $1.4 billion in the paper value of publicly traded companies in Chattanooga.
Combined with earlier losses over the past two weeks, the overall stock market is now down by more than 15 percent in the past 11 trading days and the collective value of stock-traded companies in the Chattanooga area is off by more than $3 billion since July 21.
"This is fear and panic," said Don Wordell, a fund manager for Atlanta-based RidgeWorth Capital Management which oversees about $48 billion in investments. "I don't feel like the economy is falling off as quick as the stock market is. Still, you're going to have to be patient."
Despite the Wall Street carnage, many investors and advisers in Chattanooga said they are taking a longer view of the market and are not panicked by Monday's plunge in stock values.
Oscar Brock, a Chattanooga area real estate developer and businessmanOscar Brock, a Chattanooga area real estate developer and businessman, said there's no doubt the economy is bad, but he's not losing his head.
"I'm not panicked - concerned, but not panicked," he said.
That seems to be the overall investor feeling in the Scenic City. Chris Hopkins, vice president of investments at Barnett & Company Investment Counsel, said he only received a few phone calls Monday, most all of which were from calm Chattanoogans.
"Our clients are taking this very much in stride, maybe more than you'd expect," he said.
That attitude is the most profitable to take, according to Warren Barnett, the investment group's founder and president.
"If you can keep your head when everyone else is losing theirs you can make some real money," he said. "Those who may be the most affected will be the people who try to sell now."
Glen Griffiths, a local fast food entrepreneur and owner of several Five Guys Burgers and Fries franchises in East Tennessee, said he'll be keeping a level head.
"I think it makes sense to ride this out for right now, and I just think we're in for some very tough, difficult times," he said. "I don't panic on something like this. But I am concerned."
Financial concerns drove gold prices to an all-time high in nominal dollars with the precious metal soaring $61.40, or 3.7 percent, to settle at $1,713.20 on Monday. It reached a record high of $1,723.40 per ounce during the day.
Financial companies were especially hard hit Monday after Standard & Poor's downgraded U.S. Treasurys on Friday.
The stock in First Security Group, Chattanooga's biggest independent bank which took big hits from real estate losses over the past two years, sunk nearly in half Monday to an all-time low of about 18 cents per share. Bank of America, the nation's biggest bank, lost 20 percent of its market value as financial shares in the S&P 500 tumbled to the lowest levels in two years.
The Associated Press and Bloomberg contributed to this story.
Contact Carey O'Neil at coneil@timesfreepress.com or at 757-6525.