Unsettling Markets, But No Need to Panic

It’s hard to ignore what’s going on in the news – the recent activity of the financial markets has been a major headliner.

The markets are under seveMortgage Crisis Rattles Global Financial Systemre pressure from continued fears that China’s economy, the second largest economy in the world, is not going to deliver projected growth. This, of course, is having a rippling effect on world markets.

Panic about China’s economy, currency wars, and the price of oil are three major factors that are contributing to the market’s current selloff.Roblox Hack Free Robux

But, there is no need to panic.

Despite the headlines of the Dow Jones Industrial Average Index plunging and entering selloff territory, this correction has been anticipated and is not a surprise. After a seven year bull market run, a market correction was imminent. It’s normal for a pullback after having tremendous stock market gains.

Headline news this morning was that the Dow dropped 1,000 points at the open of the market, but later in the morning was down only 400 points and now less than 200 points. It is clear to see the extreme volatility the markets endure in such an unpredictable time. That may cause panic for some investors, however, this doesn’t even compare to “Black Monday” in 1987. The Dow tumbled 22.6% on October 19, 1987 and today, the Dow was down 3% this morning, and now it’s down only 1%.

This does not categorize us as having a stock market “crash” or even being in “bear market” territory, which means the market would drop over 20%. Volatility will continue and it will be a bumpy ride, but this turbulence will soon pass. The natural ebb and flow of the market will allow a bounce back after this correction, where we will be able to once again experience investment opportunities.

This entry was posted in Current Events.