PARKERSBURG, W.Va.(WTAP)- On Monday, the Dow Jones Industrial average shot down 1,175 points. By Tuesday, it has rose back up by 567.02 points.
Stock market graphic by MGN.
Was this sudden drop expected?
According to an Edward Jones financial advisor, yes.
The pullback we saw on Monday is part of the natural cycle of the market.
Similar pull backs have occurred in previous years and at larger percentages.
He said the reason why we saw the sudden drop is because of two things. First, the market was at an all-time high by not seeing any volatility. Secondly, he believes it underwent a short term sell off where investment managers sell off their capital gains within the stocks that they own.
JC Rutter, Edward Jones Financial Advisor here in Parkersburg, explains, “I think that we forget that the market should pull back. We forget that the market should have volatility. This is a normal part of the market. It should be expected. We have been preparing our clients here for this for the past two years. If we can remember that this is a normal part of the market and we can remember to stay invested, it should be a short term pull back in the market and we should not see a long term determent to their accounts.”
Rutter states that right now the economy is in great shape, and that the market just experienced a small bump in the road.