It was an opening day many hoped would be followed with a strong rally, but the stock market’s rough start to the New Year continued Friday, causing mixed reviews for many Chicagoans.
U.S. stocks took a heavy loss ahead of the long weekend and the onslaught of earnings season, closing down 392 points, though the Dow Jones came well off session lows in afternoon trading. The loss comes ahead of a slew of disappointing U.S. data, a plunge in oil to below $30 a barrel, and a sell-off in Chinese stocks added to mounting concerns about slowing global growth, CNBC reported.
Is it time to panic?
Edward Jones Financial Advisor Kristin Anderson says there’s still potential for some gains.
“We do see that as the dollar stabilizes going into the new Year we do feel that there will be some modest economic returns and I do not feel this is the end of the bull market,” she said.
“Still, (about) 400 points is pretty serious," said Douglas Cote, chief market strategist at Voya Investment Management.
U.S. crude oil settled down $1.78, or 5.71 percent, at $29.42 a barrel, the first settle under $30 in 12 years.
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What should you do?
First, Anderson says don’t start pulling out all of your stocks. Stay invested but be sure you are diversified.
“The beginning of the year is a great time to re-evaluate how you have constructed your money,” she said. “Nobody wants to be inefficient with their money.”
