VT finance professor urges investors to remain calm despite sharp decline on Wall Street
As the stock market
, one financial expert from Virginia Tech is urging people to remain calm.
Derek Klock says this decline is caused by hysteria and uncertainty surrounding the coronavirus.
He says it is an event-based decline, not a structural one.
Therefore, he believes that since the economy was so strong before this, the market will rebound when the virus is under control.
“It’s not a structural problem with the economy like 2008 was or like the Great Depression was, so while it may be fairly severe – we’re going to have a contraction – it should not be long-lived and once we get some clarity I think markets will recover from this point,” said Klock.
Klock says people should not make rash decisions about their money and should have faith in their financial planners and their investments.