Financial planner explains stock slump, impacts

WILMINGTON, NC (WWAY) — The Dow Jones industrial average fell more than 1,000 points in early trading, with the stock closing down more than 588 points. What does this busy day at the New York Stock Exchange mean for us here in the Cape Fear?

Certified Financial Planner Ross Marino said we’re current in what is known as a correction. He said that means the stock falls at least ten percent of its recent high, and it’s been going on for a few weeks.

“But in the last few days it has really accelerated,” Marino said.

But why does this happen?

“We’ve had a couple months in a row with some headlines that had some investors worried, and now with the Chinese market declining so much, it was a good opportunity for some people or some traders to start selling stocks which caused the market to go down,” Marino said.

Marino said corrections are beneficial.

“You have to have corrections,” Marino said. “You have to have a time when the market declines. It can’t just go up, up, up without taking a break. Historically if that happens it may lead to a crash.”

What about any negative impacts for us here in the Port City?

“It really doesn’t impact anything,” Marino said. “You’re not going to see a change in gas prices or food prices. You’re not going to see car dealership doing anything differently because it’s just a movement in the market.”

Marino said these dips are short-lived.

“Remember why you are in the markets to begin with and that’s because over the long term they have gone up in value regularly,” Marino said.

He added every day is a new day, and that’s extremely true in the stock market.