VT finance professor urges investors to remain calm amidst coronavirus-induced stock market plunge
Despite one of the worst weeks on Wall Street since 2008, Virginia Tech Finance Professor Derek Klock is urging investors to not make rash decisions.
The Dow has plunged this week over concerns about the coronavirus, but Klock says people should not sell off their investments for fear of losing more money.
“During times of panic, people need to keep their heads, this is not the time to do something. It may be worrisome, it may cause anxiety or unrest, but this is not the time to do things. The time to do things is when the market is acting normally.”
He says, overall, the market has been really strong recently, and he anticipates a positive rebound.
“People should stay the course, wait for the market to relax a little bit, see where the market shakes out, and then make a reasoned decision rather than a panicked one right now.”
Klock says any time a scary sounding illness hits, people tend to panic even though more common illnesses like the flu are far more deadly and do not have nearly the same type of impact on the stock market.