Monday’s closing bell did little to calm investors panicked by the steep selloff that started Friday and continued in earnest Monday morning.
The August 21 Dow Jones plunged 531 points and doubled after Monday’s opening bell, sending fears throughout the country. Gerald Dixon of Spartanburg, who describes himself as a long-term investor, isn’t worried.
“Five, seven years ago, I was one of the ones who would watch it every single day,” said Dixon. “But you know, I can’t do that.”
Financial Planner Dan Foster agrees. He says it’s too early to panic because of recent market activity he calls a “market correction.”
“Our suggestion here is to view the current market environment as one of indigestion and not one of a heart attack,” said Foster.
A market correction is a price drop of at least 10 percent. It usually happens after a spike in the market. Analysts tie this recent one to China’s economic issues, specifically a drop in exports and manufacturing.
The concern is that this could spread to other financial markets across the world and ultimately the U.S. If that happens, it could trigger another recession, affecting everyone including people who aren’t even invested.
Analysts say it’s too early to tell if we’re even close to a recession and the only concern over this market correction should come from investors planning to retire within the next six months to a year.