SPRINGFIELD, Mass. (WWLP) – The stock market is sorting through some growing pains, and the experts 22News spoke with said we just need to ride it out.
“This a pretty challenging macroeconomic environment for the stock market for all the reasons we’re familiar with,” said John Rogers, a professor of economics at AIC.
Inflation, interest rates going up, and international events in China and Ukraine: just a few of the reasons why Rogers said we’re seeing this volatility lately. The companies that saw some of the biggest loses Wednesday? Big box stores like Target, after a unexpected lackluster quarterly report.
“They did very well during the pandemic because they were the places that stayed open,” said Rogers. “So they benefitted and now it’s kind of a fall off.”
This 1,100 point drop Wednesday comes after six weeks in declines, so what should you do with your investments?
Mark Teed is a Senior Vice President of Investments at Raymond James and Associates in Springfield. He said to sit tight.
“Don’t look at your statements,” he told 22news. “If you look at your statements, your subconscious mind gets triggered. “I need to do something. I need to fight or leave.”
Losses on Wall Street could lead to gains in your own personal bank account. Teed said this could be a good time to jump into the stock market.
“Take your IRA and convert it to a Roth,” he said. “It’s a perfect time the NASDAQ’s down 30% or take a look at the companies you’ve always liked. Are they still going to do well? Some of those big box retailers, they’re going to do okay.”
The stock market is not the only pulse on the economy, unemployment numbers remain incredibly low, and many companies are still hiring.