Bettendorf, Iowa (KWQC) - The President of the Bettendorf Financial Group spoke to TV6 about the status of the stock market amid COVID-19.
Douglas Wier said he and other financial experts believe social isolation is driving people to pull their money out of the stock market.
“Isolation has been the worst thing for people in my opinion,” Wie said. “Isolation has gotten people really jumping which is causing a lot of the downturn in the market.”
Wier calls this behavioral finance.
“That voice in your head can really hurt you,” he said. “Especially right now while people are isolated.”
Wier is working seven days a week for up to 14 hours per day to advise people to keep their investments in the stock market if they are able to.
“If they are in a viable investment they should stay in it,” Wier said. “They should not get out and lock in their losses at the bottom.”
He believes the stock market will recover, but he said it’s difficult to predict when.
“This will be a V-Shaped recovery,” Wier said. “It’ll bounce back very quickly.”
Wier said there are many examples where the stock market has suffered but bounced back, including the impact of 9/11.
“It’s not as though somehow we aren’t going to be able to handle this compared to other incidents.”
Wier wants people to have financial reassurance. On Tuesday, he said the Dow was up 11% and on Wednesday it was up 2.39%.
However, the stock market has its extreme highs and lows interchangeably since the COVID-19 outbreak started in the United States. Therefore, Wier isn’t sure exactly when it will rise and stabilize for good.
“They need reassurance that things are going to bounce back,” he said. “Companies are going to recover and that their assets will be there for them when they retire.”
It’s not just the stock market that’s hurting. It’s also the credit market, bonds, and the value of gold and silver.
On the bright side, Wier said the economy was doing well before the COVID-19 outbreak. Therefore, the stock market should be able to bounce back easier when things go back to normal.