(KPAX) BILLINGS — Wall Street has seen its worst week since 2008, and a Billings investment expert says he expects the struggles to continue because of fear of the coronavirus.
“This one’s going to take a while because there’s so much misunderstanding and fear,” said Gary Buchanan, founder of Buchanan Capital, LLC, on Thursday. “Fear is one of the things the market has the most trouble with. The virus has scared the market.”
Buchanan said he doesn’t expect a recession but if it were to happen, he said it will not be as bad as 2008 and 2009.
The fall of 1,191 points is a one-day record, and the Dow Jones Industrial Average dropped 4.4% compared with Wednesday’s close. The market has fallen 12.8% from its all-time high of 29,551 on Feb. 12.
A drop of more than 10% is called a correction. Buchanan said he may have seen as many as 25 of these during his 41-year career.
He said this correction has come about because of the coronavirus along with a decrease in manufacturing in China. He also attributes the drop to Chinese companies not being able to manufacture parts.
“The supply line disruption, how parts get to people who build things is very much a part of what’s bothering the market,” he said.