Transcript for Stock Drop Prompts 401(k) Fears
What comes to the -- -- Digital ringing the bell this morning folks up there from. -- -- -- -- -- Harry when I'm down Cutler New York US markets inching their way up this morning after pledging 326. Points yesterday. So for more a little bit about what happened yesterday and -- should be expected for today whenever an errant astronaut class talk about how the street's volatility impacting your retirement -- Wow what a day yesterday the average Americans -- down now nearly 6% this year typical -- stack -- 100000 dollars. The markets saw their worst since June to more than 300 points what's it doing what's going on. Well yeah -- was a really bad day and it's been really be that bad start to the year. Let's not forget -- -- thirteen was a huge up -- so most people's 401 -- probably rose between 25 and 30% last year so. We're suffering whether to give back here. And I think what's gone is really the last couple weeks there's been a string of data from around the world starting in China a couple weeks ago. Up to yesterday's ISM number manufacturing -- -- hearing it states showing that the global economy. Is cooling off indefinitely. Is not as strong as a lot of people thought as -- ended last year. And -- that's -- people -- thinking I was very bullish I was optimistic about the economy was about to take off to justify. The gains at the stock market had the last couple years and now people are rethinking that it because it -- to put it in the context. It was down 7%. This year -- you look at the comparisons -- comparatively speaking. Up 30% last year so if it is that a correction largest as a matter of kind of keeping this in the context. Well I think it made its both immediate you have to keep -- in context to the fact that we had a huge up here last year and 42 what was a very good years when eleven was a very good year 2010 was a very good year and most of 2009 -- a very good year for the stock market in the stock market. More than doubled from its lows of 2009 so when your out more than a 100%. In -- give -- 7%. It's not such a bad thing right do you look at -- in that context but okay this is normal nothing goes up forever nothing -- a straight line and maybe we're overview. For some kind of setback like this but it it still is very painful especially the start of the new year it does get people to again rethink. Their whole playbook for this year what this year was gonna look like so that that the issue is how -- -- we go from here. Of course and you people put it say look we had a huge rally ran that would setbacks that we -- or oh. I was wrong about what I thought was gonna happen in terms of the economy where the stock market ago. Well you know a lot of economists have been saying -- fact that issue can look at manufacturing economic productivity consumerism things like that that have been -- these markets. At the same time though if you look at the polar vortex this cold winter that we've had. Actually relates in the dollars costing five billion dollars in productivity consumer spending down. At a cost to airlines as well -- about 151000. Flights you couple that with manufacturing facilities that are shut down suppliers unable to get their supplies. And we joke but the fact that yet it took him about when it gets cold and it gets snowy and we see these kinds of pictures on -- generated -- basis but it really does take toy on the economy. And actually does -- and it hits consumers as well I don't know if you've -- year. Here actor bill -- -- natural gas bill for January but a lot of people lot of Americans are getting him they're having sticker shock and you -- heat your house. And people are looking at that the saying oh my god it -- doubled from where it was a couple months ago and so that's money that they don't have to spend in. Elsewhere whether it's at the retail store -- at a restaurant or at the movies are obvious than anything else. And again it's coming at a time where you know most Americans are pretty strapped -- -- that paycheck to paycheck. Wages have not risen for a generation. And so when you have a shock like this -- natural gas prices jumping like they did. In this polar vortex it's gonna have a huge economic impact.
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