How are consumers impacted by the Dow plunge?

The Dow Jones dropped 317 points on Thursday

CHICOPEE, Mass. (WWLP) – It was a decline big enough to erase all of the gains for 2014; the Dow Jones Industrial Average dropped 317 points Thursday.

Springfield Financial Advisor Mark Teed, Teed Capital Management of Raymond James, said he’s been expecting something like this. “We have been talking about a correction. A really good 10% correction for 33 months. It’s very abnormal.”

Teed advises people over 60 should prepare for more volatility over the next few weeks. He says Thursday’s 300-point drop presents a great buying opportunity for anyone under 30.

“If you’re already in the market, and you’re comfortable with the stocks you own, stay where you are. Don’t move. Don’t make this move emotionally and then get out, but if you’re not in the market and you’ve been waiting for a long time, days like this are actually good to make an entry point,” said Teed.

On Main Street, the sluggish economic recovery has people worried about their bank accounts. The numbers look great on paper. The national jobless rate is at a five-year low of 6.1%, but a new Gallup poll found that the declining unemployment has not boosted consumer confidence.

The poll says most people work part-time, even though they want full-time jobs, and it now takes longer to find work. People told 22News the poll accurately reflects the harsh reality.

Steve Morin of Springfield said, “Having a saving is not a reality. This thing about putting aside enough money to have six months worth of expenses aside is a joke.”

One western Massachusetts resident who works in Springfield told 22News he sees first hand, people are hesitant to buy something new. “I do a lot of real estate transactions and there’s just virtually nothing going on. So that’s a good indication that either people are afraid to step into something new, not moving, or can’t afford it.”

Right now about 19% of jobs in the economy are part-time.

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