Stock prices hit bear market territory and Channel 3 had a story about what it might mean and how people should react. CRER director Howard Wall gave his perspective.
“But Howard Wall, University of Tennessee Chattanooga Director of the Center for Regional Economic Research, says a bear market is more than just a financial event – it’s an emotional one. ‘It’s pretty common for people to overreact, up or down. You know, the market can be pretty volatile at times.’ Wall says a bear market often signals that companies expect lower profits – which can point to bigger worries, like a recession.”
Wall expressed concern about a recession being caused by the turmoil:
“A recession talks about the overall economy, whereas when you say there’s a bear market, it’s really just the stock market.”
“The group that really is on top of this are people between 60 and 65, because they’ve been saving up and the market’s done well, and they are thinking of maybe retiring, and they’re probably making a different decision today.”