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Experts evaluate sell-off
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August 21, 1998: 1:08 p.m. ET
Analysts see a flight to bonds, predict steady or lower interest rates
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NEW YORK (CNNfn) - Wall Street went into a panic Friday as fears about a global financial crisis mounted.
The Dow Jones industrial average shed more than 250 points by midday, as investors nervously eyed markets in Russia, Asia and Latin America.
What's behind the latest the latest market retreat?
Here's what the experts think.
David Jones, senior economist at Aubrey G. Langston, says bonds are the only "safe haven" in the current volatile environment. He believes stock prices will get weaker in the long run though he does not see a market collapse.
He also predicts the Federal Reserve will keep interest rates unchanged as long as global market turmoil continues.
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Bruce Ventimiglia, chairman and CEO of Saratoga Capital Management, says domestic turmoil and overseas economic worries make it a good time to invest in bonds and money markets.
He also says it may be time to take another look at small cap stocks.
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Richard Medley, president of Medley Global Advisers and an international economist, says a lack of "adult supervision" is responsible for the current global economic crisis.
He questions the power of free market forces and predicts even lower long-term interest rates.
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