Financial expert weighs in on stock market swings

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LEXINGTON, Ky. (WKYT) - The DOW was up close to 100 points Thursday after an 800 point tumble.

Officials say the stock market has been on a steady climb since 2008. That's the longest bull run in history, but eventually, it will come to an end.

Wednesday's stock market drop came as a shock to many. Jason Vander Pol explains while 800 points appears large, it's only about a 3-percent drop.

"If you look at it historically, Black Monday in 1987 was only a 500 point drop, and that was a 22-percent drop. So it's important to have a little bit of perspective when you're looking at these things," says Jason Vander Pol, Chief Compliance Officer of Strategic Wealth Designers.

Officials say the stock market has been on a steady climb since 2008. That's the longest bull run in history, but eventually, it will come to an end.

A few of the factors that contributed to the crash include political unrest, an inverted yield curve, and the first interest rate hike by the fed in 10 years.

"People shouldn't make daily decisions based on one day in the market. I would urge caution, especially in regards to your retirement timeline. If you're in your mid 40's, you shouldn't be largely concerned about any of this. But if you're in your 60's and you're thinking about retiring soon having some conversations with your adviser and positioning yourself properly is an important step to take," says Vander Pol.

As far as an outlook for the future, while there are some similarities between the market now and our last recession in 2008, Jason says it's just too soon to tell, despite those that claim it's a sure thing.

"Nobody has a crystal ball. The average investor shouldn't lose sleep at night over this."

Experts say to have ongoing discussions with your financial adviser, put a plan in place, and give yourself a safety net in case of an emergency.



 
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