Albany - A day of rocky trading on the stock market ended with the market down, but not as much as feared when trading began early Tuesday morning. The federal reserve announced an emergency three quarter of a percent interest cut early Tuesday morning. They hope that will stimulate the economy and head off a recession.
Financial advisor Bo Johnson says the market is going through a period of correction due in part to the housing crisis and higher energy prices. But he says you shouldn't panic. The worst thing to do at this time is to sell off all your stocks or cash out your 401-K.
He said, "These periods we get through. The market does come up most of the time, but we're going to go through declines in the market periodically. That's just the way it works."
It's hard to determine how long a correction will last, but Johnson says election cycles do impact the stock market. He says if the party in the white house changes, it could last longer.