It was a wild way to start off a Monday on Wall Street where the Dow tumbled more than 1,000 points before a slight rebound.
Usually August is a quiet month in the financial world, but Monday’s drop was historic.
Within the first four minutes on Monday morning when the stock market opened, it tumbled more than 1,000 points.
“First thought is my 401k is going to take a hit,” said Gail Monges.
“It took a big hit,” said Michael Rinaldi.
Joel Johnson, of Johnson Brunetti said “a lot of people are saying ‘hey we’ve been up for the last 6 years, it’s time to get out and pocket some profits’,” but he is telling people not to worry.
“If you’re 10 years or more from retirement, I would not worry about your retirement accounts. The big question there is are you allocated the right way,” Johnson said.
He expects the stock market to continue having wild swings like it did on Monday because the Chinese economy is slowing down.
China is one of the country’s largest trading partners.
It also is having an impact on the stock prices of some of Connecticut’s largest companies, like United Technologies, General Electric, and Traveler’s.
“Although we could see some layoffs, the danger of a United Technologies really getting into trouble over this is very unlikely,” Johnson said.
He added that the tumble isn’t all bad news.
“Retailers might be fearful of getting stuck of stuff on the shelves so you might see some sales,” Johnson said.
Also, the price at the pump will likely decline because when the stock market took a nose dive, the price of crude oil also went down.
The best advice Johnson has is to ride out the storm if you can.
If you have any questions, the best thing to do is talk to an investment advisor.
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