Online Brokers Send E-Mails to Reassure Investors

Share this content:
Investors reacting to the recent volatility in stocks were asked not to panic in e-mail letters sent out last week by the heads of online brokerages E-Trade.com and Schwab.com.


Designed to prevent closures of online accounts by new investors, the letters to clients and mailing lists were e-mailed less than a week after the April 14 plunge in the Dow Jones Industrial Average and Nasdaq index. The following Monday April 17, the Nasdaq recorded its highest point gain, and the Dow was up 3 percent.


E-Trade Chairman/CEO Christos M. Cotsakos, acknowledging the stock market's sharp moves in both directions, said the U.S. economy still enjoyed the benefits of a decade-long boom. Unemployment was low; inflation below historic averages, and productivity growth was at a record high.


"Especially in times like these, it's important that all investors, myself included, need to take a step back to think about where we've been and where we're going so we don't overreact," Cotsakos said. "Your investment lifetime will include a number of market cycles. How you react and manage those cycles will have a major impact on your success in building wealth over the long term."


Similarly, Schwab's letter advocated the advantages of long-term investments.


"Although volatility is in the spotlight, long-term investors know investing requires patience and discipline," Schwab said.


The letter had four pieces of advice for investors: Stocks are long-term investments; always consider risks; don't forget to diversify; and educate yourself. At the end, Cotsakos also recommended other investment instruments such as bonds, mutual funds, CDs and IRAs. Of course, E-Trade offers all of those.
close

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above