The market has risen from the ashes, but experts are still warning about the possibility of getting burned.
The Nasdaq composite index rose about 5.3 percent, or 76.21 points, and the Dow Jones industrial average grossed 368.05 points or about 4.5 percent.
Lyle Schonberger, director of research for H&R Block Financial Advisors’ Detroit office, said the rise is from when a couple major brokerages announced positive comments about the market Monday morning.
“I think stocks last week fell farther than they should, so that led to some buying,” he said.
Schonberger said there is potential for a couple of days when the market might rebound, but there may be some problems.
“I think there is still too many uncertainties to upset the market at this point,” he said.
Vic Loomis, senior vice president and senior leader for National City Bank of Michigan/Illinois, said the rise could be attributed to a number of reasons.
Loomis, an East Lansing City Council candidate who is also chairman of the city’s Downtown Development Authority, said the market is still subject to volatility and hopes the market will establish a base.
“I hope what we are seeing today is an expression that the economy is still in pretty good shape,” Loomis said.
But some experts feel airline stocks are still unstable.
Donna Majauskas, an investment representative for Edward Jones, 1200 Michigan Ave., said she directs her clients toward more stable stocks such as medical and Wal-Mart.
“All of the analysts are saying no, that it is just too volatile of an industry,” she said.
But Charles Ballard, an MSU economics professor, said airlines are still a worthy investment.
“The airlines were up today, and the only reason they can be up is that some people were eager to buy those stocks. At least some investors see the possibility that they have bottomed out,” he said.
Northwest Airlines, US Airways and America West all made double-digit gains. Ballard said last week the airlines were all down by 40 percent.
Ballard said the airlines have since worked to compensate for the losses by cutting salaries and reducing flights.
“This was a large disaster, and it may take a while for the public’s confidence to return to normal,” he said.
