EVANSVILLE, Ind. (WFIE) – Stock markets are still down after a brutal week.
14 News reporter Brady Williams spoke with a local economist about the turbulent market and what that means for investors.
The DOW Jones saw a drop of 1,000 points on Thursday.
This was despite the Federal Reserve raising interest rates on Wednesday.
Old National Bank’s Chief Economist Matt Finn said that rate change was done to combat inflation, and it led to a better market that day.
The sudden drop after, he said is just indicative of current trends.
Finn said the COVID-19 pandemic, plus a war in Europe, and every other recent global issue has led investors to reassess how risky the economy is.
He said this isn’t a bear market, and it’s far from a crisis, so investors need to just be cautious and steady.
“Really what people need to do is just stick to a plan,” Finn said. “They need to have an investment plan and stay with it, because this will all work itself out in the long run.”
He said typically transition phase like this will last between six to 18 months.
Copyright 2022 WFIE. All rights reserved.