GREENVILLE, NC (WITN) As the Coronavirus spreads overseas, Americans are worried about their health and the economy. The U.S. stock market has plummeted in recent trading sessions.
Financial Adviser Jim Tauton says the action to sell was motivated by emotion. "Fear... the markets move mostly based on emotions because people will invest their money based on fear or greed. In this case fear took over," said Tauton.
According to Rick Niswander an Accounting Professor at ECU, China has the second largest economy in the world that's currently running at half speed. When folks heard about the conditions in China they were fearful that it would hit close to home. "And people are saying... mhmm my guess is tha'ts not good so I'm gonna sell some stocks and that's why the markets going down. They're saying the thoughts that I had last week or the week before about what the economy is going to be like in the next two three or four months maybe that's not right, and so I'm gonna sell my stock," said Niswander.
Niswander adds in the long run the market will go up.