Oklahoma Finance Professor Analyzes Dow Plunge

A University of Oklahoma Finance Professor says Monday’s staggering drop in the stock market isn’t as big of a deal as some may think. 

02/05/2018 Related Story: Dow Plunges In Worst One-Day Drop Ever

Dr. Pradeep Yadav is the W. Ross Johnston Chair of Finance at OU. He says despite the fact the stock market tumbled more than 1100 points, which is four-percent of its value Monday, history shows there’s a very good chance it will come all of the way back.

“The levels of risk aversion change levels can change, because of lots of reasons, but the economy otherwise is very solid,” he said. 

Dr. Yadav says ten years ago, the stock market lost half its value over span of nine months, but it eventually came back.  He says the sharp recent upward trend in the stock market was due for a correction anyway.  He says investors should stand pat, and resist the urge to sell.