As the Dow Jones industrial average dropped over 500 points Monday, it left no doubt for many in Lodi that the United States economy is in the throes of a recession.
Though the reasons for such a drop and influences aren't necessarily local - Lehman brothers declaring bankruptcy, Merrill Lynch being absorbed by Bank of America - the results are being felt on a local level.
When larger, publicly traded financial institutions start to fail, it means better business prospects for smaller banks, according to Jeff Michael, the director of the Forecasting Center at the Eberhardt School of Business at University of the Pacific.
"Some of the local banks could be looking good to people around here. Bank of Stockton or F&M bank … may look pretty good," Michael said.
And even though the average Joe may not pay attention to such a downward turn in the market, it still affects consumers and investors throughout the Lodi area.
Phil Lenser, a financial adviser with Edward Jones Investments in Lodi, said the best thing local investors can do is to remind themselves that such fluctuations can happen, and usually do every six to seven years.
"One of the most significant dilemmas is, 'should I sit tight or take my money out?,'" Lenser said. "This is a market environment where you want to say put."
Lenser did point out that a certain segment of Lodi's population is building for their future, for retirement mainly, by investing. Yet the plummeting numbers have an impact on both investors and consumers.
"The average person doesn't have a big stock portfolio. If the wealth that you have in that declined five percent today, you have reason to be concerned," Michael said.
And, whereas, consumers may not think in those terms, the businesses they purchase from do. Items such as cars and homes that were once in abundance, won't be as readily available to the buying public. Businesses won't be able, in many cases, to expand or offer the products and service that they would like to offer.
Still, no matter how confusing it might be for most, there is hope for a recovering economy.
"I think something of this complexity is not easily distilled down to one or two influences on the market," Lenser said. But, as he explained, the "market values will rise again on a better day."