BATON ROUGE, La. (WAFB) - In 2008, the United States experienced the Great Recession, which experts say was the biggest economic decline since the Great Depression. Many people are concerned of a repeat after recent news of the DOW dropping to a record low of nearly 800 points.
“When I hear the word recession, I think back to the Great Recession of 2008, and of course, nobody wants to lose all their 401ks and all their retirements and everything that they worked so hard for,” said Stephanie McMechan, a Baton Rouge resident.
Financial planner, Mawe Takyi, with Dent Asset Management Firm, says it’s all part of the economic cycle and is not uncommon to see significant drops in the market.
“For a brief period in time, the ten-year treasury had lower yield than the two-year treasury. Some people see that as a signal of an upcoming recession, and so that caused some investors to sort of sell out of the market. Every year, on average, there is a lot of volatility. On average, the market goes down about 14% intra year,” said Takyi.
Recent reports show the market did rebound slightly as of Thursday, Aug. 15.