John Carroll University professor explains what the Dow plunge means to you

CLEVELAND, OH (WOIO) - Stay patient and get good advice that's what economics professor John Burke, who once taught at Cleveland State University and now at John Carroll University is advising after the stock market ended its worst week in two years.

The first question we had for Burke is, what is causing the market instability?

"It's got the jitters because wages are rising and when wages rise too fast that puts pressure on corporate stock and profits," he said.

What about politics? It seems we can't go a day without hearing about another twist or turn in the Russia investigation or the FBI probe.

"There is a tie to politics, but it's a loose tie and a tie you can't measure," Burke said.

The investigations lead to uncertainty and the fear of the unknown can sometimes cause the markets to stumble.

A critical issue every time the market stumbles is that some people move their money out of the market into something they believe will be a bit safer. Is that a good idea?

"No, you can't time the market and there's been nobody able to do that," Burke said.

The most important question we had to ask, is this the start of a bear market?  "Inevitably it's coming," Burke says, "but I don't think it's coming right now."

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