(Drew Angerer/Getty Images)
BOSTON (WBZ-AM) — The stock market made a quick recovery after stocks around the world plummeted Monday.
According to CNN, the Dow dropped over 500 points. U.S. indexes saw sharp losses, landing below 24,000 for the first time since June. After the Brexit vote was postponed Monday afternoon, the British pound dropped to its lowest value in more than 18 months.
WBZ NewsRadio1030’s Laurie Kirby spoke to WBZ financial editor and Before the Bell host Dave Caruso about the possibility of leaving a bull market.
Are we headed into a bear market?
Dave Caruso: No, I don’t think we are. I think if you look at over the last 10 years, we’ve gone up 331 percent. So, what you do is you’ll find that these things don’t snap off a cliff and say, ‘Okay, we’ve got a great market,’ and then we just fall off. They tend to be more gradual, and I think that’s what we’re seeing right now.
What should we be doing?
Caruso: Breathing deeply. Most of the time we look at these things, we tend to overreact. Even if you look at how we’ve done so far this year, you look at what’s going on. Health care stocks — this year they are up 11 percent. Who would have guessed that the year before?
What’s going on here?
Caruso: The two things that are the most prevalent are what the Fed is doing with interest rates, and that means rising them. And the other is how we are doing from growth worldwide and the United States, and it’s slowing. So, I think those are two pressures that we’re facing. But, I certainly don’t see anything cataclysmic like we saw 10 years ago, or like we saw in the 1930s and 40s.
Listen to the conversation: