Mellody Hobson '91
Mellody Hobson '91
Andy Goodwin, courtesy Ariel Capital Management
As the stock markets gyrate and economists talk of recession, these are scary times for small investors no less than large ones, and many wonder what will happen next. Be of good courage, says Mellody Hobson ’91, and be smart. Hobson is the president of Ariel Capital Management, the largest African-American-owned capital management firm in the world, and a regular contributor to ABC’s She spoke with PAW about the financial crisis in mid-October, on a day when the Dow Jones Industrial Average plunged more than 7 percent.

When the markets are tumultuous, is it time to panic?

Is this economic crisis different from what has happened in the past?

If I have a lot of money in the stock market, should I get out when values fall, at least in the short term?

How do I protect my 401(k)?

If I’m trying to save for my child’s college tuition over the next, say, five years, how should I be investing my money?

If I have an adjustable-rate mortgage, what should I do?

The real estate market is down, and so is the value of my home. What should I do?

Interview conducted and condensed by Mark F. Bernstein ’83