FAYETTEVILLE, Ark. — The stock market took a dramatic plunge Monday (March 9) morning amid growing coronavirus fears and an oil price war between Saudi Arabia and Russia.
Local financial experts say although this downtrend is hard to see, now is not the time to panic.
Within minutes after the trading day opened in the U.S., the S&P 500 took a seven percent hit halting trading for a short period of time.
Experts from the University of Arkansas say this stock market trend is only temporary.
“I would expect the market to react like this, but this is not a permanent feature. Eventually, we will get past the coronavirus and the markets will pick back up," said Mervin Jebaraj, Director at Center for Business&Economic Research at Sam Walton College of Business.
The Dow Jones and NASDAQ also suffered, both seeing significant losses.
Wealth management experts say investors need to consider comprehensive financial planning.
“Building towards retirement, building towards goals, and they’re very in-depth. They are tested against market conditions like this so, when we do these plans for our customers, they’re able to go in and we are able to develop a strategy that tests for downturns in markets," said Brad Blankenship, Regional Manager Arvest Wealth Management.
While scary to see, it's not something we should sound the alarm bells for just yet.
“Unless you’re retiring tomorrow then you are really not supposed to be in equity, most of the rest of us are invested in the long term and the markets will pick back up in the long term so, just avoid looking at it for now," Jebaraj said.
Experts say while manufacturing has slowed in places like China, it’s not a big portion of the economy here in the U.S. and can’t tip the overall economy into a recession.
If the virus begins to shut down major cities in our area, then there’s reason to believe a recession is possible.