(WWLP) – Stocks took a tumble Monday, closing out its biggest drop since May.
Traders are worried about the potential ripple effects if a heavily indebted Chinese real estate company defaults. If the default were to happen, the Federal Reserve here in the U.S. could pull back its supports for the markets and the economy.
22News spoke with a local financial expert, who said the average investor shouldn’t panic.
“When a market reacts like this that means something is going on,” Mark Teed, Senior VP at Raymond James Financial explained. “Nobody is quite sure what exactly it means yet, so just sit and wait. Don’t panic, don’t sell, don’t change your strategy. That’s the worst thing you can do.”
The Dow Jones Industrial Average fell by 972 at its session low, closing with down more than 614 points.