WILMINGTON, N.C. (WECT) - The Dow Jones Industrial Average sank 7.8%, its steepest drop since the financial crisis of 2008, as a free-fall in oil prices and worsening fears of fallout from the spreading coronavirus outbreak seize markets.
The sharp drops triggered the first automatic halts in trading in two decades.
The price of oil plunged nearly 25% after Saudi Arabia indicated it would ramp up production after Russia refused to production cutbacks in response to falling demand. Europe fell into a bear market. U.S. stocks are now down 19% from the peak they reached last month. Bond yields plumbed new lows as investors sought safety.
Chris Dean, a certified financial planner, joined us on WECT News First at Four and said the key for investors is to remain calm.
“Don’t panic,” he said. “Investing is a crock pot, not a microwave. So, you need to look at your allocation and not necessarily what the market is doing.”
Dean recommended that part of an investor’s holdings remain in cash and fixed income, which can act as a shock absorber during market volatility.
“Make sure you have a plan and stick to your plan,” he said.
His other advice, try not to get emotional.
“Get an advisor who can take the emotion out of it,” he said.
For more about the tough day on Wall Street, click here.