Strome Business Minute With Dr. Jeff Tanner

Welcome to a Strome Business Minute, presented by the Strome College of Business. Wow, what a rough couple of days on the stock market. After erasing just about all of the pandemic-related losses of the past ten weeks, the market was easily overpriced but as the media focuses on the apparent second wave of increased corona virus positive tests, investors got nervous and sold off, driving prices down. The Fed added to the worries on Wednesday by warning of high unemployment for some time to come. The Dow fell seven percent and the NASDAQ six yesterday. Some of the hardest hit were retailers, airlines and cruise lines, companies more likely to be hurt by a return to lockdown. What investors forgot is that many companies stopped forecasting earnings, afraid of the pandemic’s effects, and those that did guided to lower earnings, so this correction seems like it was probably overdue. To learn more, visit odu.edu/business. This Strome Business Minute is presented by the Strome College of Business, Old Dominion Univ