Boise (670 KBOI News) – After a few weeks of slow steady gains, the stock market roller coaster is again dropping quickly.
Thursday’s big drop in the major indexes was a symptom of investors’ fears over a looming trade war with China, says Brian Wiley, host of Idaho’s Money Show on 670 KBOI.
“The biggest decliners of the day really focused on industrials,” said Wiley. “Industrials are companies that ship a lot of things overseas, or use raw materials from overseas. Any sort of price increases could hurt the bottom line of these companies. When we hear that type of news, of course, investors look at the future values of the companies, and it could hurt them.”
But Wiley advises his clients not to do anything crazy, and just ride this one out. He says if anything, this is an opportunity to buy, but only use money you won’t need in the next few years.
The Dow Jones Industrial Average has lost 10% of its value after it’s all-time high on January 26th, putting it back in bear market territory.