Is it time to buy into the stock market? Many troops watching this week’s financial turmoil think so.
Despite the economic roller coaster ride, many said they see the losses on Wall Street as a reminder to be patient — and as an opportunity to pick up stocks at a discount.
Few said they were frightened by the many warnings of financial catastrophe.
President Bush began the week by urging lawmakers to quickly approve an estimated $700 billion injection for the troubled economy and warned that inaction could lead to a long and painful recession.
The U.S. stock market took a record tumble, and the world economy shuddered as Congress struggled to find consensus on a rescue package. The Senate passed a bailout plan late Wednesday and the House was expected to reconsider the issue this week.
"I look at it as a good time to invest because all the stocks are down," said Chief Petty Officer James Drake, of Sasebo Naval Base in Japan.
"I think if you weather the storm for a few years, it will brighten up again."
Drake said he intends to let his investments ride for decades before retiring, long after the financial crisis has abated.
Sgt. Daniel Hughes, with Troop C, 3rd Squadron, 89th Cavalry Regiment, said he is still "throwing money" — about $1,900 a month — into mutual funds while deployed to Iraq.
"Right now, I’m buying twice as many stocks as I was two years ago," he said.
For the brave, the faltering financial market is a golden opportunity to purchase bargain-priced stocks, said Lance Cpl. Bobby Yarbrough, 22, at Marine Corps Base Camp Butler on Okinawa.
"This is the time that all investors dream of. When stocks are this low, investors call this fire-sale prices," he said. "When people get scared, I get greedy."
It may be easier for younger servicemembers to gamble with retirement investments because there is time to recover from losses, said Senior Airman Francisco Maurin, of Kadena Air Base in Okinawa.
"I have a fixed paycheck. It allows me to be more aggressive," he said. "It’s like playing in a casino."
Not everyone is rushing to plunk down their money casino-style.
Petty Officer 2nd Class Tim May and wife Amanda said they’re taking a measured approach, watching the headlines from their Naples, Italy, base and holding back from panicking.
"It’s too early to see how this [economic turmoil] and bailout will affect the market," said the 29-year-old sailor, who has about $10,000 in mutual funds planned for retirement in about 30 years.
"I have faith our money is OK," Amanda May said.
While many servicemembers feel safe from the sinking economy — and are happily investing — others are struggling with repercussions of the downward slide.
Spc. Juan Mogollon, 23, of the 21st Theater Support Command in Kaiserslautern, Germany, said since the mortgage rate on his Colorado Springs, Colo., home was adjusted last year, his payments have gone from $900 to $1,250 per month.
In the meantime, the house’s value has dropped from $160,000 to $145,000.
"So I’m just hoping the crisis gets over so I can sell it, because I can’t keep paying $1,200 … on something that’s losing money," he said.
Air Force Staff Sgt. Steven Inouye, of Kadena Air Base, Okinawa, said he plans on leaving the Air Force and moving to Hawaii next year. But gas prices and the stateside economy might dent his plans.
"I’m worried about just getting a job and how much money I’ll be able to make," he said.
Stars and Stripes reporters Michael Gisick, James Warden, Matt Millham, Sandra Jontz, Cindy Fisher, Natasha Lee and Mark Abramson contributed to this report.
