Some people on Twitter called it “Black Monday”.
The Dow is on pace to set a one-day drop record, after falling 1,000 points at the opening bell Monday, but rebounded 800 points. Back then, the 10-day streak following the signal culminated with average daily losses of -0.98%.
It’s become a daily ritual for 36-year-old Ryan Mulbery of Shawnee, surfing financial websites, keeping a watchful eye on a nest egg he’s working hard to build.
U.S. stocks rose after China’s central bank lowered interest rates overnight, helping to allay fears about further bad news from the country.
“It definitely makes you leery of what’s going on”. Mulbery pondered.
“The price of entering the market has just gotten cheaper, and the world isn’t that different from what it was a week ago”, said Kisgen, now Boston College Carroll School of Management associate professor of finance.
“If you are saving for your child’s education and your child is going to college in a year, your investment shouldn’t be in the market”, he said. They call it a correction: when prices move 10 percent or less. He’s been in this field for 30 years, experience that assures him this isn’t a full-fledged stock market crash.
He says if you can, now is the time to buy stock. Growth focuses on companies that investors expect to grow faster than their peers in terms of revenues or earnings or cash flow. They are typically used by brokers who manage money for retail investors. Monday saw the highest levels of market volatility since the financial crisis.
Zandi added that American households with stock or retirement investments shouldn’t run for the exit yet.