‘No time to panic’: Local analyst tamps down recession fears due to coronavirus

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OVERLAND PARK, Kan. -- The Dow Jones Industrial Average slumped more than 1,000 points Monday as investors worry the spread of Wuhan coronavirus will weaken global economic growth.

Ken Eaton, managing partner at Stepp & Rothwell financial firm, understands the temptation to predict a global market slowdown after Monday’s dismal day on Wall Street.

RELATED: Dow plunges more than 1,000 points as coronavirus cases surge in South Korea and Italy

With the markets suffering their worst single day losses in years, many see a stifling market correction as an inevitability.

But Eaton believes it’s more of a natural downturn after consecutive months of steady gains.

“It’s not surprising that we’re seeing this kind of volatility after the stability that we had over the last year or so,” Eaton said.

Although the virus has temporarily shut down some manufacturing facilities in China, and is beginning to make an impact in other parts of Europe as well, Eaton believes this is no time to push the panic button.

“This isn’t even a market correction yet,” Eaton said. “The markets are just down about 4% today, typically market corrections are a drop of 10% or more and that happens every 8 to 12 months.”

“If you’ve got 20 years before you retire, you’re going to encounter a lot of these. Nobody needs to panic.”

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