The Wall Street roller coaster ride has many investors concerned over market volatility.
Western Mass News talked with one financial expert today to get his view on the fears over a trade war with china and what that could mean to your 401k's.
The news that China hit back with new tariffs against the U.S. sent stocks tumbling when the market opened this morning.
The market then rallied and ended the day up. It was just another rocky ride on Wall Street.
"The tariffs are a reason for this to happen. This kind of correction was going to take place at some time. There was going to be a cause," said Brian Corridan of Corridan and Company in Chicopee.
Corridan has seen market volatility before.
This time, it's tariffs that's causing the roller coaster ride on Wall Street.
Corridan said that tariffs aren't mandated forever. They come and go
"Tariffs go on and tariffs go off. Tariffs are bargaining chips and that's all they are until one country can posture itself to be in what they perceive to be a more favorable position," Corridan explained.
Corridan said that the up and down market we've seen recently is a sign of the times.
"This is the new normal. In the stock market, volatility, unprecedented volatility in our lifetime, is going to become the new normal and we'll have to get used to that," Corridan added.
China has raised the stakes in the escalating trade showdown with the United States by imposing tariffs of 25 percent on more than a hundred American products, including soybeans, which could hurt farmers.
How badly could this hurt the U.S. economy?
"In the short run, possible yes. In the long run, it will all be assimilated into the thought process and cost structure, so it should even itself out," Corridan noted.
As for individuals concerned over their 401ks, Corridan said don't panic. There will be ups and downs, but he sees an optimistic economic future that bodes well for investors.
"As long as the economy is in good shape and the growth pattern we're on now is really strong, as long as that continues, we're going to see a strong market," Corridan said.
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