Wall Street ends a wild week with a big gain
Providence, R.I. —
Wall Street ended the week with a big gain following a stretch of ups and downs.
Financial analyst Don Sowa, host of "Money Talk" on AM 790, told NBC 10 the volatility is normal.
“I don't expect 2018 to be an extraordinary year like 2017 was where some people were making 15, 16, 17 percent returns on their portfolios. That's an anomaly,” Sowa said. “But we are letting them know that maybe you'll do better than average if average is 5-and-a-half to 6-and-a-half percent, which is your target.”
In regards to investments and 401k plans, Sowa said most people should ride out the market shakeout.
“The person who is going to need the money that they're investing within this year, within this calendar year, they should be moving probably a substantial amount of their money into much more conservative investments because they don't have the benefit of time. The long-term investor, who's retiring maybe 5 years or more out, they don't have to do anything in this environment. They can take advantage of better pricing,” Sowa said.
Looking ahead, Sowa said there are concerns about inflation but he believes 2018 will end on a high note.
“We may be up, if I use the S&P 500, the S&P could finish up in 7 to 9 percent positive on a number of different levels,” Sowa said. “The market is constantly testing the psychology of investors by offering buying or selling opportunities from time to time.”
Traders are also concerned about interest rates rising as stocks fall.