Local expert says don’t panic over 800 point Dow Jones drop

Local expert says don’t panic over 800 point Dow Jones drop

EVANSVILLE, Ind. (WFIE) - The Dow Jones Industrial Average had an 800 point drop.

Here locally, Hilliard Lyons Regional Director Phillip Roberts says this drop is partially due to the two-year bond and 10-year treasury bonds inverting. This is called a a yield curve inversion.

Roberts says the yield curve inversion is a good indication of the possibility of a recession, but it does not have a direct correlation one.

Another factor in the drop is how other markets around the country are doing. Roberts says Germany's market is currently contracting.

He also says China’s industrial production is at a 17-year low.

Despite all of this, Phillips says this shouldn't cause a panic.

"A one day movement in the market should not dictate how you invest in the tomorrow and moving forward," says Phillips. "But most importantly, seek the advice of a professional and make sure that you're comfortable with how your money is invested."

Phillips also says when the stock market is volatile like this, people should be assessing their own risk tolerance and investment goals.

He also says overall, you need to make sure you’re checking in with your financial adviser.

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