Concerns over personal investments after DOW Jones drops nearly - Western Mass News - WGGB/WSHM

Concerns over personal investments after DOW Jones drops nearly 1,200 points

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SPRINGFIELD, MA (WGGB/WSHM) -

The stock markets plunged on Monday as the DOW Jones Industrial Average fell nearly 1,200 points.

It was the largest point drop in the history of the market.

Now, investors are nervous that we’ll soon see higher inflation and interest rates.

The DOW Jones Industrial Average ends the day at just over 24,000, a drop of 4. 6 percent. 

Karl Petrick is an Associate Professor of Economics at Western New England University. 

He said it started the Friday after a Labor Department Jobs report showed wages went up nearly 3 percent.

"That started process of markets rethinking. They were worried about inflation, and interest rates and that started selloff," Petrick said.  

Professor Petrick added that it was also sparked by the controversial memo released Friday that alleges the FBI and Justice Department abused its surveillance tools to spy on the Trump Campaign.
  
The drop in the markets worries about what that means for our retirement investments, but Petrick said it's too early to tell how this will affect it. 

"If its a market correction and periodically you'll get collective idea of what you should do. So if its just a few days of selling no big deal, or  if this is a beginning of overall pessimism then it will be rockier time but good time for bond prices so that's part of 401k," he explained. 
 
Petrick said don’t rethink everything just yet. He feels that if everyone starts rethinking their portfolios and starts selling, that will drive the markets even lower.

Copyright 2018 Western Mass News (Meredith Corporation). All rights reserved. 

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