U.S. Stocks plummet, analysts say no ‘panic selling’

TOPEKA (KSNT) – Working in the stock market can be a stressful job.

But watching the stock market fluctuate thousands of points, only to rebound, then fall again, is stressful for the average investor.

Local and national experts have one, simple piece of advice.

“No pain selling,” said Rob Weigand, a professor in the Washburn business school.

Weigand said the volatility in the stock market today was not unexpected.

Since the collapse in 2008, he said the stock market had been growing and was in need of a “correction.”

The bear market in the United States is also in response to two things overseas.

In the last two weeks, China has devalued it’s national currency – the Yuan – twice. Weigand said this was not something widely accepted financially but explained that a devalued currency would give more value to exported commodities.

Also, two of China’s biggest cities had turbulent trading days.

Stocks in Hong Kong and Beijing were also down.

The temperamental trading days in both countries meant the Dow Jones Industrial Average finished 588 points down. But Weigand wants everyday investors to look at the stock market fluctuations in terms of percentages not points.

“But in terms of 2008, stocks fell – in the entire course of that bear market – by about 50 percent,” he said. To put the 588 points in perspective, the 1,000 point plunge immediately following the opening bell was not even 10 percent of the Dow.

So, Weigand said, at closing the Dow was off just four percent.

The Obama administration is also warning Americans to keep their stocks in place and avoid quick sells of big amounts of stock.

Today White House Press Secretary Josh Earnest fielded questions from reporters about the roller coaster trading day.

He reminded the press corp that the economy and the stock market are not synonymous.

“I think that there is not doubt that the U.S. Economy is far stronger now than it was in 2008. Whether you evaluate job creation, the unemployment rate or even just broader measures of economic growth,” he said.

But if the urge to fuss over the portfolio becomes too strong, Weigand gave another simple piece of advice.

“If you have a relationship with a financial advisor, call them,” he said.

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