Dow Jones plummets, investors react

WACO, Texas - It's been a bit of a roller coaster week for those in the stock market - with the Dow dropping on Monday, rising on Tuesday and dropping again on Thursday.  

However, you might want to stop for a second before making major changes to your investments. 

Financial Advisor Todd Stoner says to not panic. Although this was the second 1,000-point drop in the market this week, he is asking investors to think smart. 

Todd is keeping a close eye on the Dow Jones Chart. The market's uncertainty is causing some of his clients to worry. 

"We've had people call or email us and ask 'Is there something we should sell ? Should we change how we're investing?,'" he says.

The Dow took a ten percent nosedive on Thursday - the lowest in two years.

If it's long-term, the drop could have a negative impact on your investments, retirement plans and even the U.S. economy as a whole. 

Despite these things, investor Vik Deivanayagam says he is not planning to pull any of his stocks. 

"It is a little scary," Vik says. "Does your heart flutter a little bit when you see the Dow drop 1,000 points like that? It's a little disconcerting, but it's not a time to panic." 

Todd says you shouldn't. He is advising people to avoid impulsive decisions. 

"If it's really painful to you and you're really worrying about it, maybe your investments were a little bit too aggressive," Todd says. "Maybe make a small change in how you're invested, but not to make a big change. Just sort of an emotional reaction to what's going on."

Todd is confident the market will bounce back.

"Most of the time, it's just a short-term blimp in the market and it recovers fairly quickly," he says.

"It's all based on faith and confidence," Vik says. "You just have to have faith and confidence that it's going to come back around." 

When the Dow usually drops, Todd says the market typically has a 15 percent chance of staying down or an 85 percent chance of improving in the next three to six months. Of course, he's hoping for the latter.


More Stories

Don't Miss

  • Hidden History
    Copyright 2018 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
  • South Korea 2018
    Copyright 2018 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
  • Countdown to Daytona
    Copyright 2018 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
  • Your Home Network
    Copyright 2018 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
  • My Wellness Network
    Copyright 2018 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

Latest News