CHICOPEE, MA (WGGB/WSHM) - The last twenty-four hours on Wall Street have spooked many investors.
Local brokers and financial planners tell Western Mass News they're fielding a constant stream of calls from clients wanting to know how the past day or so has affected their bottom line.
"Certainly the last week or so has been cause for concern for investors at every level," Brian Corridan of Corridan and Comapny tells us.
Investment executive Brian Corridan of Corridan and Company in Chicopee tells Western Mass News he's telling his clients:
"What everyone needs to do is sit back and take a breath, because let's look at where this market has gone in the past year. I mean, we've had an unprecedented stock market," continued Corridan.
So then, what happened?
Analysts blame trade war fears with China and, more importantly, what's called, an inverted yield curve, meaning interest rates flipped on U.S. treasuries with short-term bonds paying more than long-term bonds.
"The ten-year treasury bond should pay more money than the two-year treasury bond. Yesterday, they didn't," says Western New England University Economics Professor Karl Petrick.
Professor Karl Petrick says, when bond prices go up, the yield or the return the buyer earns on that bond goes down, which is usually a sign of an impending recession, but Petrick says, perhaps, not this time.
"Real concerns about the trade wars and the domestic economy for sure, but nothing indicating that we're on the verge of a recession coming up," said Petrick.
So what is coming up?
Petrick says, possibly, another interest rate cut by the federal reserve.
"It's possible that they're going to lower rates again in the future as a way of buoying the market. They still have room to do that," stated Petrick.
In the meantime...
"Right now, folks just need to keep a sharp eye on where their holdings are, and, by the way, make sure that you are aligned properly. If you are ready to retire or in retirement, then you should probably not be that heavily in the market to begin with," added Corridan.