Stock markets see fluctuations inside the coronavirus outbreak
Things may look calm at the closing bell, but it is true that amid the coronavirus outbreak, the stock market is panicking.
The coronavirus stock market correction in the last 10 days allowed major indexes to crash, each at a range of 10 to 12 percent, the largest drop since the 2008 recession.
“I’ve had 4 clients contact me worried about the stock market in the last week and two days. I’ve had 3 clients contact me and wanted to add more money to their accounts, realizing that this market drop is really to them, and in my opinion, is a buying opportunity,” said Bob Bennie, a local wealth management expert.
Initially, the shock came as a result to china’s economic stall as they are dealing with the outbreak.
The cause of fear in the stock market see supply chains and manufacturing being affected, as well as the tourism, airlines, and energy industries.
“Some investors are anticipating that that’s going to affect sales and profits of companies. They’re anticipating that. We don’t know how much that’s going to happen yet at this point, and it’s certainly not going to affect earnings and sales enough to cause a 20 percent drop in the stock market,” said Bennie.
So, experts want to reassure the public that even if the stock market is reacting, it doesn’t mean you have to.
“Your investments in the stock market are alright. This is not a good time to sell, not a good time to get out. It will come back and you’re okay,” said Bennie.
They say the most recent numbers are providing a promise in positive outlook amid all the fear.
“Now it’s rebounded back a bunch yesterday with a record highest gain in the stock market ever of about 1,295 points, so I think that gives me confidence that this drop isn’t going to be sustained and the drop really isn’t real,” said Bennie.
Officials say the corrections could continue through the next 4 months even, but they remind us again that everything should be alright.