Stock Market downturn effects on North Dakota

BISMARCK, ND ( KXNET ) — In the latest downturn, global markets, including the three major U.S. stock market indexes, all lost around 3% of their value with the DOW losing more than 1,000 points after 3 consecutive days of trading earlier this week.

After the brief sell-off in stocks, the markets have since risen again, but this has not yet eased fears of a looming economic recession based on reports that employment was lower than expected last month as well as weak reports for construction and manufacturing.

Wall Street also remains tense over the Federal Reserve’s refusal to cut interest rates, that remain at their highest levels in 23 years. The higher interest rates make it more expensive for people across the nation, and here in North Dakota, to borrow money and has led to a decrease in overall consumer spending.

Although, many investors foresee unstable markets ahead, one local financial advisor says this news should not shake the confidence of people who have their retirement savings invested in the stock market.

“Anytime there’s a scare or any kind of volatility, it catches our attention and even in North Dakota, we are exposed to global events. So, using times of volatility as an opportunity to regroup. Take inventory of your assets, your liabilities, your cash flow. Redirect, re-prioritize, where that cash flow is going. Stay the course and it will be fine in the long run,” said Jason Naas, Financial Advisor, Edward Jones.

Naas added that the recent plunge in stocks is just a temporary event in what has been a relatively strong year for overall growth in the markets. Despite last week’s downturn, the S&P 500 index has risen almost 10% in the past year.

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