Stocks tumbled, rallied and then dropped again this week in the wake of an announcement Friday that the United States’ credit rating had been downgraded from the top AAA to AA+ by a major debt-rating agency, raising questions about a “double dip” recession.
Whatever the outlook, however, there can be no doubt that instability in the global markets in general and the United States markets in particular will have an impact in the Virgin Islands.
Of course the people watching the bottom line most closely will be those who have invested money in those markets, like John Cline. The BVI Investment Club member and pastor said, personally, he saw “a significant drop” in his investment portfolio over the last week.
But to sell off their portfolios now would be a mistake for most investors, said Financial Secretary Neil Smith.
“My advice would be not to do anything,” Mr. Smith said. Rather than basing decisions on the movements of the preceding week or few days, it’s wiser to wait to see what the long-term action will be, he said.
“It will get better in the long run,” he said.
See the Aug. 11, 2011 edition for full coverage.