Nampa (670 KBOI News) – Vote recounts…instability in England and Italy…the ongoing trade war…the strong dollar…all of these are reasons why the three major stock indexes took a bath today.
The indexes were down sharply…he Dow lost 2.3% percent of its value, the Nasdaq lost nearly 3%.
NNU economist Dr. Peter Crabb says there’s a reason the tech-heavy Nasdaq has taken a beating over the last few months.
“It’s not surprising to see the stock market correct, and most of that correction be in the stocks that ran up quickly,” said Crabb. “The stocks that over the past year, or 18 months, that rose the most, were primarily tech stocks. Or, at least the social media giants, you might include Amazon in there.”
A correction happens when markets lose 10% of their total value.
Crabb says a lot of investors seem to be getting out of stocks, and moving to more secure areas, like cash and bonds, at least for the time being.
