Financial adviser checks in on stock market following historic dip and rebound
After a turbulent week, the Dow Jones Industrial Average bounced back nearly 600 points Tuesday.
Opening over 1,000 points lower than it did five days prior, The Dow looked poised to rebound for a second straight day on Wednesday, but one local adviser says the day-to-stay doesn't really matter to them.
"As a financial adviser, we really don't watch the dips," said Mike Eastridge of Raymond James Financial in Bowling Green, "We don't watch the daily change in the market, because we plan our portfolios around a long-term investment."
The Dow is often viewed as a standard measurement of how the stock market is performing as a whole. Mike Eastridge also added that the rebound may be more indicative of the market than than the dip.
"There are a lot of people on the sidelines with a lot of cash ready to invest, waiting for a dip," he said. "That's what happened this week. We had a dip and a lot of people have invested this week, and the market is going to start climbing back because of that."
"Now do they know what the bottom's going to be?" he asked. "Probably not, but they use their best judgement, as we do."
Eastridge believes investors that rely heavily on the market for retirement aren't in any danger at the moment.
"We have had a few people call in the past couple of days concerned about the dip in the market, afraid that it might be a long-term depression or recession or just a larger dip. We don't think so," he reassured.
Eastridge pointed out that this trend has been ongoing for about six years and shows no signs of slowing down.
"We think it's just a correction in the market," he said, "and the bull market, which is the longest bull market ever, will continue."
Many have viewed the past two days as a great time to invest, as the stock market begins to recover.
The market was much more stable Wednesday, closing just 20 points below open.