The Average Investor Is Getting Used To Negative Trends

Larry Richert and John Shumway
December 10, 2018 - 11:08 am
Stock Index

Dreamstime

PITTSBURGH (Newsradio 1020 KDKA) - After another bad week on the financial market, investors are hoping things to turn around.

CBS Business Correspondent Jill Schlesinger joined KDKA Radio on Monday to tell listeners how the average person is reacting to this negative trend.

These are the questions she was asked:

Is the negative growth all tied back to the president saying, “I am the tariff man?”

“I don’t think it is. I think the exact same things are going on right now that have been going on in October - that had been going on earlier and earlier this year,” Schlesinger said.

Are investors concerned with the financial market?

“There is this generalized fear about what would happen if the U.S. and China got into a protracted trade war. Back in February, when we had our first correction of 2018, that seemed to be the generalized anxiety. But growth is going so well, why are getting ourselves nuts?” Schlesinger explains.

“The market did react to the fact that the economy grew like great guns in the second quarter and did pretty well in the third quarter. Here in the fourth quarter, it is going to slow down a little bit. Now that everybody recognizes that growth is absolutely downshifting, there is a concern.”

How are investors reacting to recent financial market?

"It suggests that the regular investor who is trying to save for the long term is getting a bit more used to these up and downs. Whereas the institution, the ones who are judged on the year end  quarter end, are getting twitchy,” Schlesinger tells KDKA Radio.

"People are starting to get a little bit more used to the volatility, they’re not panicking as much, and hopefully, there are some advantages to moving your portfolio around and making those end of the year changes now, while the market is lower."

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