NEW ORLEANS, LA (WVUE) - While the Dow had its largest point drop for a single day, it's important to point out it wasn't the biggest percentage drop in history.
"I think what people should think of is we're really back to where we were on the first of this year. So, we've given up about five weeks of gains. It's not cataclysmic," said Tulane University stocks expert, Peter Ricchiuti.
Ricchiuti says part of what's behind the drop is that people are starting to understand inflation is coming back.
"We really haven't had any inflation since I started in the business about 40 years ago, and what that does is it pushes up a lot of things like interest rates, and high interest rates are the enemy of bonds and stocks so I think that's kind of what's doing it," he said.
But, he said the economy is strong and we've had a very strong stock market for about nine years.
"The rises you were seeing were just totally unsustainable, and I think people need to know that what most people look for is a correction," Ricchiuti said. "A correction is usually about a 10 percent decline in the market, and we're nowhere near that, so we could fall quite a bit more or you could get a lot of bad headlines, and still it really wouldn't be the end of the world."
We also spoke with the local managing director for Morgan Stanley, Jim Spiro, who said if you have a good portfolio, it's probably because you're developing it for the long term.
"If you look at other businesses whatever they may be - a restaurant, a laundromat, a gas station, a travel agency, I don't know of anyone who is running a travel agency who has a bad week and says, 'You know what? Maybe I ought to get out of this business,'" said Spiro.
Experts agree that for the majority of people who are in a 401k, the key is to just stay the course.
"I think most people are in the market through their 401k plan, and one of the great things, the way that is structured, is when the market does take a dip, if you're putting that same amount of money in and maybe your employer's matching it and such, you're buying at a lot of different prices over the term of your career, and so these low prices and these dips are often just an opportunity that allows you to buy more shares at that same dollar value so, that's really the plus on it," said Ricchiuti.
Ricchiuti said the only thing he would worry about going forward is when the market drops people don't feel as rich, and sometimes they cut back on buying a new house or a new car. And that slows the economy back down. He said it's that perception of how I'm doing financially that is the risk.