The stock market is crashing and people are kindaaaa freaking out. On Monday, the Dow Jones industrial average plunged more than 1,500 points at one point after sinking 665 points on Friday.
So, What is Going on?
Well there have been a variety of opinions given by experts. According to Money, we can ” Chalk this up to a case of , be careful what you wish for.” Meaning that investors should be rejoicing because they recently got the corporate and income tax cuts they’ve been hoping for. The economy is accelerating for real, with U.S. gross domestic product now expanding at a annual pace of more than 3% (after inflation) for three straight quarters — According to Money.
Others feel that “The market got phony again,” said Cramer, host of “Mad Money.” “It’s a shame. It can’t handle the volume and it can’t handle this level of selling.” Cramer said there are opportunities to buy when the market breaks. “And the market just broke again,” he said. “We haven’t seen it break in a long time.”
However, through all my research, most people are saying not to panic. “Market corrections of 10% or more are frequent occurrences, and the vast majority of stock corrections don’t turn into full-fledged bear markets, defined as losses of 20% or more.” “In other words, this is not the time to undo your entire investment strategy.”
You can read more about the stock market plunge and what you should do with you investments here.