BUFFALO, NY (WKBW) - It's been a rollercoaster ride for U.S. stocks but local financial experts are urging investors not to panic.
The Dow Jones industrial average fell 588.47 points to 15,871.28 on Monday as an economic slowdown in China continued to push selling.
Tony Ogorek, the owner of Ogorek Wealth Management, has served as a financial advisor for more than 25 years. He admits he was busy on Monday fielding calls from clients looking for reassurance and recommended people stay the course. "People should take a chill pill and relax," said Ogorek.
Ogorek called Monday's plunge significant, and believes the market could go down further as this correction continues, but says long term history shows things will bounce back. "No one wants to wade into the middle of this. No one understands exactly what is going on with this. Markets will sort themselves out. They are really in the business of price discovery and right now the market is trying to figure out a fair price for what is going on."
Dr, Bill Ganley, who has been an economics professor at Buffalo State College for over 40 years, understands investor concerns. "It's kind of scary," said Ganley. "People have a right to be concerned about it. I don't think it will have a long term impact on the U.S. economy."
"Whatever happens in China, they sneeze, we get a cold. That's true, Ganley continued.
Both agree that investors should not over react but continue to take a long term approach. "We know there is an end to these things," said Ogorek. "We had the financial crisis in 2008 where we were truly facing a second grade depression. People thought the world was coming to an end and four years later they recovered everything if they stayed in the market. I think that is a great lesson for people"
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