CORPUS CHRISTI, Texas — Many woke up to 'stock shock' Monday morning after the stock market took a nose dive, Dow closed down over 1,000 points.
It all has to do with economic worries. Last week's July "unemployment report" sparked concerns that the U.S. could fall into a recession.
Financial experts said this is not a time to panic; and if you have the cash, the drop could be viewed as a good time to invest.
Nearly everything on Wall Street was in the red on financial advisor Edward Campos' computer screen Monday morning.
"This is going to shock some people if they open their accounts today," he said. "The important thing to remember is not to panic."
Campos has been a portfolio manager for ten years and works at Stonewater Wealth Management in Corpus Christi. Their office is located at 4639 Corona Drive.
"What you see is a reaction to what is happening in Japan and overseas," he said.
For those with 401(k)s, he advises not to cash out.
"The rallies comes really fast and really quickly after the decline and if you miss out on the first couple of days you usually miss out on the bigger part of the rally so you don't want to miss out on the recovery by cashing everything out and you end up with a lot less money," Campos said.
He said the last big dip took place in 2020 during the COVID-19 pandemic, but bounced back.
"That lasted a very short period of time," Campos said. "We went down in April and we were right back to where we were with all-time highs in June, July."
"It's the back and forth noise we see from buyers and sellers and that's kind of what we saw today," assistant professor of finance at Texas A&M University Corpus Christi, Dr. Leobardo Diosdado said.
He said what happened with Monday's market can be an investment opportunity for those planning for their retirement.
"What you really want to take into account here is the time value of money depending how much time they have with their investment goals this is a great opportunity to reach out to someone, sit down build a plan and say, 'How can I capitalize on the events that occurred today and what can I do to prepare for retirement,' " Diosdado said.
Meantime, Campos encourages folks to focus on the future and find a reputable financial advisor that will give their honest opinion and know what they are doing.
"It's really easy to overreact to a lot of these things you have to remember you have to take a step back even after this massive dip we had today," he said.