A week after the stock market unexpectedly plummeted over 1000 points, it appears that the financial markets have recovered from the sudden shock. Jason Rozenboom with Marion County Bank’s Main Street Investments in Pella says the sharp drop in the market was caused by a combination of concerns about the European markets, along with several potential trading errors and a series of high-frequency and computer-generated trades that snowballed into a very quick short-term decline. Rozenboom says that while the markets have recovered for the time being, financial regulators are still trying to figure out exactly what happened and what measures to put in place to prevent future occurrences.
Joe Cunningham, investment officer at Iowa State Savings Bank in Knoxville, says with the markets more volatile than ever before, it’s important for investors to not get too caught up in market highs and lows in the short-term, but instead to think long-term on their investment planning. Cunningham also says setting “limit orders” – or set amounts on when to buy or sell stocks – can also help investors to navigate the turbulent financial marketplace.