Q&A: Market’s recent plunge hasn’t changed investors’ thinking very much
NEW YORK — There were few warning signs before the stock market’s plunge in early February, but so far, the slump hasn’t changed investors’ thinking very much.
Stocks did well throughout 2017 and the gains sped up in December and January. Investors were convinced that stocks would keep going up because the global economy continues to grow, which helps companies earn more money.
The market tumbled as investors worried that inflation is picking up and that interest rates will also rise, which would likely slow the economy down. That helped pushed stocks to a 10 percent drop in less than two weeks.
The new worries about inflation haven’t much changed investors’ preferences for stocks, however. Last week investors bid up technology and industrial companies and banks, which tend to do better when economic growth is stronger. Those are the same types of companies they were buying before the market tumbled.
Watch Full Video : https://www.usatoday.com/story/money/personalfinance/2018/02/17/mutuals-markets-recent-plunge-investors-thinking/344924002/