Monday morning the dow saw an all time low in point decline, dropping almost 16-hundred points, the biggest decline during a trade day in history. This drop is causing concern across the country, having many ask the question; what's next?
For people with 401Ks and other stock-driven retirement plans, new or soon-to-be-retirees could see smaller checks, at least for a while.
When it comes to more middle aged investors, the drop could be beneficial to their retirement plans since it's cheaper to buy in right now, and for younger investors with rates so low, this could be a prime time to open mutual fund accounts.
WAAY 31 spoke to a financial advisor who told us that in a normal year, the markets will see a change of 10% or greater but this is something we haven't seen since January and February of 2016, which is why so many are concerned.
He elaborated saying he asked clients if they remembered January of 2016 and they said no, the reason being the overall year ended up being positive for them. Since February of 2016 the markets have only been going up and that can only happen for so long. Before Friday, the S&P 500 had gone the longest stretch ever without a 3% pullback.
Basically if you go on a run you have to take a breather at some point, you can only run for so long. The stock market is the same way, it needs to take a breather and this is typically no cause for panic. Leaving many to do what may seem so simple; wait and hope for the best.
The advisor also told WAAY 31, the biggest concern would be if there is a recession and as of right now there is no sign of a recession in the near future as the economy has been on the up since President Trump took office.