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Financial experts react to ups and downs of stock market

Posted at 6:38 PM, Aug 15, 2019

After a major tumble on Wednesday, the stock market closed mostly higher Thursday, making up a fraction of the ground lost the day before.

Although some people are now fearful of a recession, financial adviser Robert Piola of Wacker Wealth Partners says an economic slow down isn't likely to happen for another few years, if at all.

"Generally, 22 months between something like this happening and a recession, but that's the average," Piola said.

He adds that those who should be most concerned about the fluctuation in the market are those nearing retirement.

"Work with your advisor and look at, is that risk tolerance in the environment acceptable for you? If it is, great, and if not, then maybe you need to get a little more conservative," Piola said.

Others like Mahdi Rastad, an associate finance professor at Cal Poly, say this may be an investment opportunity.

"It's actually an opportunity for people who are buying a house or owning a house because whenever the long-term rates are lower, it tends to help the mortgage rates to drop as well," Rastad said.

But Angela Renn, a student at Cal Poly who is two semesters away from graduating, worries a recession could only hurt her already high student loan debts.

"If a recession actually happens, then we may not get a job and we'll have to move back to our parents home and not having a job to pay our student loans," she said. "It's really hard for us."