SPRINGFIELD, Mass. (WWLP) – It’s been a roller coaster ride on Wall Street this week. Stocks plunged Monday and Tuesday, made strong gains Wednesday and Thursday, before ending the week almost flat.
Economics professor John Rogers told 22News that corrections, both up and down, are inevitable; and a reminder that stocks will swing. He said, “Data will tell you long term stocks are a very good investment, but one of the reasons they’re good investment is because they’re risky.”
Despite the mid-week rallies, stocks are still on course for their worst monthly performance in more than three years. Portfolios have lost some value, but Rogers said the losses aren’t permanent, as long as you’re still invested in the market.
“You have to take a long term perspective and you have to be willing to profit from the downturns. You can buy more stock at the downturn for a cheaper price,” he added.
And there is reason to be reassured: The U.S. economy continues to recover, slowly but surely. The euro is down; and the Federal Reserve is closely monitoring stocks and jobs reports to gradually raise interest rates in a way that, hopefully, won’t rock the market.