Stock Market Takes a Dive

It was a wild ride on Wall Street today with the Dow Jones Industrial average taking a nosedive, losing more than 1,175 points dropping below 25,000 for the first time since January 4th during a second straight day of sell-offs.

It was the worst single-day point drop the Dow has ever sustained and, coming on the heels of Friday’s 666-point loss, erased the Dow’s gains for the year.

By the end of the trading day the Dow had dropped 46 percent, more than 1,100 points, closing at 24,345.

Troy Reinhart of Northwest Quadrant Wealth Management said that while these fluctuations can be scary, market pullbacks prevent stocks from overheating and gives investors who were stuck on the sideline a chance to “get in”.

Despite the recent turmoil, the Dow remains up almost 40 percent since President Trump’s election and the official white house comment today was that “markets do fluctuate in the short term,” but stressed, that the fundamentals of the economy are strong.

Simple Cents: Clarifying Current Status of Stock Market

In our money segment, Tyler Simones of Northwest Quadrant Wealth Management joined Central Oregon Daily at 3pm to talk about the stock market.  The market is at a record high, yet some investors are not experiencing that same kind of growth. Tyler explained it’s because when stocks are up, bonds are typically down, and most investors have a mixed portfolio with both stocks and bonds. He recommends having bonds in your mix but perhaps look for shorter term bonds.

Tyler also talked about the importance of paying yourself first, which means deciding on an amount, no matter how low or high, to put aside first before paying bills or anything else. He says if young people can begin this habit now, it will make all the difference for their financial future.