Business World

While the stock market was choking on news that two Wall Street titans had buckled in the credit crunch, Larry Swedroe, research director at Buckingham Asset Management LLC in Clayton, went for a walk before lunch on Monday.

By contrast, Joe Terril, president of Terril & Co. in Des Peres, said the government’s refusal to help out struggling investment banks left him questioning the stability of the entire financial system.

Swedroe’s nonchalance and Terril’s despair marked the extremes of reaction among St. Louis-area investment advisers Monday as markets staged a dramatic retreat. The 504.48-point drop in the Dow, which closed at 10,917.51, was the worst one-day drop since the market reopened after the terrorist attacks of Sept. 11, 2001.

Swedroe said he was confident in his strategy of buying and holding passively managed investment funds. Bear markets happen, he said, and every investment plan should allow for them. "Investing is simple," he said. "It’s just not easy because emotions get in the way."

The government’s refusal to prop up Lehman Brothers, the purchase of Merrill Lynch by Bank of America and the precarious position of insurance giant American International Group shocked many investment advisers, including Terril.

"That’s real scary," said Terril, who is known for his bearish opinions check cash advance no fax payday loans. "It’s almost like saying, ‘There’s no way we can bail this situation out. We’re going to have to take our chances.’"

Terril said he was more concerned about troubles in the bond market than those in the stock market. "No one wants anybody’s credit," Terril said. "You can’t trade it. If people can’t borrow money, they won’t be able to roll over their debt."

Ken Crawford, senior portfolio manager at Argent Capital Management LLC in Clayton, said he was surprised the government didn’t make more of an effort to salvage Lehman, but saw no need for investors to abandon their financial plans.

"The last thing you want to do in a time of distress, or even in a time of euphoria, is to throw the baby out with the bath water," Crawford said. "People should be worried, certainly, but they shouldn’t be frightened. Eventually the stress the financial world is feeling will be alleviated."

Scott Wren, senior equity strategist at Wachovia Securities LLC in St. Louis, said that while many investors are feeling some pain, there are some reasons for optimism. He said he expects companies to begin reporting earnings growth soon, and the threat of inflation may be ebbing along with oil and other commodity prices.

Peter Schick, chairman of