CARY, N.C. (WNCN) – If you have money invested in the stock market, Monday wasn’t pretty.
The Dow Jones average closed down 1,175 points.
“A lot of people are freaking out about it,” Joshua Stanton from Apex said.
“That’s quite a lot. I don’t think that’s good,” Miranda Fuller from Raleigh said.
To get a better idea of how not good, CBS North Carolina spoke with Hans Schiel, a certified financial planner.
“You don’t want to sell or buy really on one day or one week’s activity,” Schiel said.
Schiel said he called some of his clients to ease their concerns.
He said your strategy should depend on where you are in your career and how close to retirement you are.
“If they’re going to need to get at their money for income this might be a good time to do some rebalancing, simply just as a wakeup call,” Schiel said.
So what’s behind the drop?
“Fear in the herd mentality and the real fundamental that’s behind it is the perception of rising interest rates,” Schiel said.
The new chairman of the Fed, Jerome Powell was sworn in Monday.
Powell and the rest of the Board of Governors will determine whether to raise interest rates.