At closing bell Monday, stocks officially crossed into a bear market.
That means there was a more than 20 percent drop in the Standard and Poor’s 500 and the Dow. We spoke with local financial advisor Howie Pentony who says we experienced that recently.
“Now we had [a bear market] two years ago in 2020 when the market went down 30 percent. But it seems liked it only stayed there for two days. There was a quick recovery,” Pentony said. “I’m not sure about this time.”
Pentony says there’s a combination of reasons as to why there’s been a big drop in the market.
“In my mind there’s just no doubt as to why we’re weak here. Inflation is above 8 percent around 8.6 percent or so. Oil is $121 per barrel this morning. And this summer with the demand, people are traveling. Covid has put people into a situation where they want to go someplace, and they’re probably going to go.”
Pentony says that since most views on the market have been negative, he wouldn’t be surprised if the market went the other way in a contrarian effort.
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