CHICOPEE, Mass (WWLP) – 22News spokes with Financial Advisor Mark Teed with Raymond James about the impact the coronavirus has had on stock markets.
Q: The Dow sank more than 1400 points on Wednesday, has anything like this ever happened before?
A: This is actually quite routine. Since 1945 we’ve had 27 of these sell-offs and even in the last ten years, we’ve had five significant sell-offs. Of course, we’ve always recovered but it always feels different. It always feels like it hurts more this time than ever before.”
Q: Usually how long does it take for the market to rebound after something like this?
A: “I have a number. The last ten years the average correction goes down and it takes 103 days for it to recover from top to bottom and then back up to a new high. So about five months usually it was the norm is.”
Q: So is the same thing expected after the coronavirus?
A: Well, it depends how long this lasts, the fear on this one is so different than other ones. It could be a little bit deeper and could be a little bit longer recovery, but I would suspect the news from congress today will start to help things. The President’s speech last night I guess was very disappointing but we’ll start to hear more positive things that make the market turn around.”
Q: You say the fear is different around this, what do you mean by that?
A: “Well it’s so unknown. Usually when Wall Street corrects is because oil prices have spiked, or there’s a war going on but this one feels different because it’s so fearful because nobody really knows how much impact we’re gonna have nationwide. Everybody’s talking and the more people talk the more fear builds up, so it’s different this time.”
Q: So people who might be at home watching right now might be a bit confused, what’s your advice to them?
A: We’ve been through this before, we always come out of it, we will this time again and we just don’t know. It could be as soon as today or tomorrow that this thing turns because even today the sell off is a little bit fraudulent. It was because of the speech last night more things weren’t promised so even the sell off it feels like we’re starting to get into a position where the markets going to go back up.