Louisville investment experts: Don't panic about the stock market

Louisville investment experts: Don't panic about the stock market
Experts are trying to calm investors' nerves by reminding them that rapid change is common in the stock market. (Source: NBC News)

LOUISVILLE, KY (WAVE) - The drop in the stock market Monday sent a panic through investors throughout the United States.

But experts say the rapid change is normal, just rare after the slow and steady growth the market has experienced in the past year.

"Last year was very abnormal, very quiet from a volatility standpoint," Hilliard Lyons Chief Investment Officer Mark Nickel explained. "Having some volatility in the market is normal and that is what we are experiencing."

Nickel said every 11 months the stock market "corrects" by 10%. The last correction happened January 2016, so the 1,000 point drop in the Dow created concern. But Nickel said even the alarming drop wasn't as bad as it seemed.

"That was the 99th worst day of the Dow, so yes it wasn't fun, it wasn't comfortable but it wasn't one of the worst days," Nickel said.

He said investors in the market should be encouraged by a growing economy and overall gains. Hilliard Lyons is advising their clients to assess their longer term goals and make sure they're comfortable with the amount of risk in their investments. As for the drop - don't do anything drastic.

"This is some temporary volatility. This is normal," Nickel reassured. "Don't lose sight of your long-term objectives and realize the underlying fundamental of the market are still intact."

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