Reassurances Dow Jones drop isn't a sign of impending recession

Author
Newstalk ZB,
Section
Audio,
Publish Date
Friday, 12 October 2018, 7:59a.m.
The industrial average is struggling to recover from yesterday's drop, swinging wildly between gains and losses.

An investment researcher says a massive sell-off on the Dow Jones is not a sign of an impending recession.

The industrial average is struggling to recover from yesterday's drop, swinging wildly between gains and losses.

Investors are facing a rising 10-year yield and a falling global growth forecast.

However, investment researcher Sam Stovall told Mike Yardley the drop shouldn't be overstated.

"Investors are now pointing the blame but I don't think we are heading for recession and usually we need the fear of recession to cause a bear market."

he said it's important to put the drop in context.

"A majority of the benchmarks, even though they have fallen from five to 10 plus percent, are still in positive territory on the year."

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