Local economist offers insight, advice to investors after tough day for stock market

PROVIDENCE, R.I. (WLNE) — A weaker-than-expected jobs report in the United States last week created concern about an economic slowdown.

Those concerns were exacerbated Monday as a collapse in the Japanese stock market sent shockwaves all the way to Wall Street.

Dr. Chris Limnios, an associate professor of economics at Providence College, described how an underwhelming U.S. jobs report could be tied to the crash.

“Unemployment rate went up a little bit,” Limnios said. “Not as many jobs were created as was expected. People kind of bake that into their expectations of what’s to come and essentially nobody wants to be caught carrying the bag last, so you get this bit of a sell-off.”

Limnios said investors should not panic despite a grim outlook to the market.

“There are a couple of things that are sure, one of them is death, taxes and the other thing is if you give the market long enough, it eventually always rebounds,” Limnios said. “No matter how bad the situation has been.”

Limnios said the dip in the market could have a silver lining.

“We’ve had prolonged policies which have slowed things down, and now inflation might start really going down,” Limnios explained. “So that policy might bear some fruit very quickly.”

Limnios offered some final advice to those with concerns.

“You don’t lose money until you sell your stocks,” he said. “Following the great financial crisis, which this pales in comparison, people thought the world was going to come to an end and the markets were going to implode on themselves. People sold, and panic contributed towards the crash, but the market rebounded. I want to say it was within a year.”

Limnios said it is almost impossible to predict whether a recession is imminent but added that certain factors around the globe, including turbulence in the Middle East and the upcoming U.S. election, could certainly play a factor.