Central Coast investors cautiously optimistic after wild stock market swing

Shock waves from Wall Street in New York were felt around the globe on Monday, and also closer to home on Main Street in Salinas.

The Sallabedras have been investing in stocks for 25 years.

“I don’t like the roller-coaster ride, particularly when you start getting older, your savings, your retirements are at risk,” Paul Sallabedra said.

The wild market swings also impact cities like Salinas.

California’s state public pension system, CalPERs, manages investments for almost two million current employees and retirees, and the movement of the market can influence how much pension CalPERs can pay out. Cities are on the hook to make up the rest.

Salinas is already struggling to fill that widening gap.

“What’s that cost us over the next seven years? An extra $14 million. This is basically doubling some of our contributions in the PERs. So it’s a significant stress on our budget and one that we don’t have many tools to address,” city manager Ray Corpus said.

Another concern about market fluctuations is what it means to the local economy.

“You don’t spend as much, you don’t have as many people on your payroll in businesses,” Corpus said.

But seeing the rally on Tuesday, the city and individual investors said they are not too concerned just yet.

“It’s too short of a time period, just one day in the market. I know today’s information shows there might’ve been a correction upward. So maybe not the full thousand points, but certainly several hundreds and that makes a difference,” Corpus said.

“I mean it was a big year last year and the gains in January were pretty strong. I think it probably was a correction, concerns about inflation makes sense but I think things will be OK,” investor Otto Kramm said.