With the Dow Dropping on Monday by Over 600 Points, a Question for Investors in Sammamish: Next Steps?

It was less than two weeks ago when Moody's Investors Services reported it , given the Washington, D.C. debate about raising the debt ceiling.

That issue was resolved but on Friday, Standard & Poor's lowered the coveted credit rating of Aaa for the U.S. government.

By Monday, investors continued to make their thoughts known - they fled the markets to find other places to park their money. The Dow Jones industrial average dropped by more than 600 points by the end of regular trading.

The Nasdaq dipped about 7 percent by the end of Monday's trading and Standard & Poor's 500-stock index was down more than 6 percent, The New York Times reported.

So, while municipal governments and school districts - including and  - escaped the potential sting of a downgrade, investors in cities, including Sammamish, are likely pausing to consider the financial news.

How so?

For many retirees, dollars invested in stocks help pay their monthly expenses. For families, investments in the stock market are used to help cover current or future college tuition for children. , given the dollar shortfall in Olympia. 

Markets do return to their previous levels. That includes stocks, housing and jobs. The question, though, is: At what point? Another one, too, is: How much of a financial shock can a person, family or company endure? And for how long?

We at Sammamish Patch are by no means experts in the field. But we know there are many financial specialists in Sammamish, who work on investments and money management in their full-time jobs or in their corporate leadership roles.

So, we thought we'd ask for public discussion: What advice would you give to other investors in Sammamish and the Seattle area? And how are you dealing with dip in stocks? If the news is not affecting you that much, why?

You don't need to give away the keys to the financial kingdom in your answers. This platform also is not geared for advertisements for financial services. General guidance or links to articles to read or videos to watch would be appreciated.

Why?

If money helps provide security and opportunities in life, it seems counterproductive to continue along a path in which dollars are shed and a waiting game commences.

To get things started, Carl Richards, who writes for the Bucks blog on The New York Times, talks about financial planning for good and bad days. Ron Lieber, another Bucks blogger, writes about those who should sell their stocks.

The Wall Street Journal posted videos Monday on its website about what the drop means for investors and how cash remains king for companies.

Over at Seattlepi.com, Nick Eaton compiled information from other media outlets for investors and came up with the advice of patience.

The Associated Press also noted Monday's downgrade by Standard & Poor's of Fannie Mae and Freddie Mac. Both provide mortgages which the federal government backs, The AP reported. That downgrade could mean more expensive mortgage rates, down the road, for people who are new to borrowing. 

Editor's note: On Tuesday, the Dow Jones industrial average closed more than 400 points up compared to Monday.