Take the long view, experts say, as market downturn continues

Published: Jun. 14, 2022 at 7:49 PM EDT
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ROANOKE, Va. (WDBJ) - The pullback continued on Wall Street Tuesday, with the Dow Jones Industrial Average dropping more than 150 points and taking stocks even further into bear market territory.

The Dow has now retreated more than 20 percent from its recent high.

Although the drop will rattle some investors, experts say it shouldn’t come as a surprise.

“We’ve been due for a bear market for a long time,” said financial consultant Patrick Ayers. “Since 1946, since World War II ended, on average we have a bear market every 5.1 years. The market’s been straight up for 13 years.”

Ayers is the President and CEO of Ayers Financial Services, and hosts a weekly radio program ‘Financial Sanity.’

He said he hasn’t been bombarded with questions from worried clients, because they have prepared for the downturns that inevitably come.

“We have to have a down time,” Ayers told WDBJ7. “We can’t go forward sometimes without taking a step back. We have to understand that. It’s normal. It’s a good part. It allows us to reset so we can build further.”

Fears about inflation, and the likelihood the Federal Reserve will raise interest rates, could continue to push stocks lower.

But Roanoke College Economics Professor Dr. Alice Kassens encourages investors to take the long view.

“It will sort itself out,” Kassens said in an interview Tuesday afternoon. “The business cycle has been here for a very long time and will continue to be here. So we will have ups and downs. The downs are painful for some, but we always come out of it, so I just encourage people to be patient and think of the long run.”

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