SPRINGFIELD, Mass. (WWLP) – 22News hears from local economic experts after stocks dropped significantly Tuesday due to concerns about high-interest rates, and disappointing retail earning reports.
John Rogers is a professor of economics and finance at American International College (AIC).
Roger’s told 22News that the economy is still strong right now with consumer spending holding up and the unemployment rate low.
Despite the Feds hiking up interest rates, which is meant to slow down the economy and combat inflation. Rogers has advice for investors, and that’s to hang in there for the long term.
“These things go in cycles and we were in a bit of an up-cycle since the beginning of the year.
We are now in a down cycle from what it looks like and as these things work through the economy, the market will anticipate the good news and the bad news,” said Rogers. “And then the stock market will then hopefully will go back up and it always does eventually.”
The Federal Reserve will be meeting again in late March, they are expected to raise interest rates again.