FOX 2 - The Dow Jones Industrial Index plunged more than a thousand points on Wednesday — the lowest it's been since June of 2020.
"There’s never one single factor that takes stock prices down," said David Sowerby, Ancora Investments.
Experts say it could be due to a number of factors from the war in Ukraine, inflation, gas prices, and even consumer spending.
Retail giants Target and Walmart took a big hit as they both announced lower than expected profit margins..
"We know inflation is just like a tax, it takes away purchasing power and investor concerns that inflation will stay higher longer, is the big unknown, that’s why stocks have been weaker 2022," said Sowerby, a portfolio manager.
"We know the stock market does this, this is not a surprise," said Dan Casey, Bridgeriver Advisors. "So if you’re freaking out that bad you shouldn’t have that much money in the stock market in the first place."
Metro Detroit financial advisors Sowerby and Casey say that despite Wednesday’s plunge in the market, this is not the time to sell your stocks.
"I would think that the majority of people in my opinion, would probably be best to stay put," Casey said. "Because if you sell now, now you’re at the next stage, is trying to time it for when do you get back in, right?"
"Unless you need your money in the next 3 to 6 months you certainly don’t sell today," Sowerby added. "And if that was the case, why would you be in the stock market, to begin with."
They say brighter days are likely on the horizon.
"There’s nothing wrong with the companies," Casey said. "They’re all sound. We’ve got the cash, the demand is there. I just think that we need to work through these super unknowns."