FLORIDA, USA — Stocks are in a bear market, inflation is at a 40-year high and economists are warning about a possible recession on the horizon.
One professor at Florida Gulf Coast University would argue against some economists believing we have already entered a recession.
"It really depends on who you talk to but I personally believe that we’re already in the midst of one," said Tom Smythe, FGCU finance professor. "A lot of forecasters believe that a recession would come in the latter half of this year or early 2023."
The S&P 500 is down more than 21% since its most recent peak in January, which means it has entered a bear market and when stocks fall at least 20% from their previous peak.
For millions of Americans saving for retirement, the economic turmoil has raised some big questions, such as should they sell investments or stay the on their current route?
Experts say to not panic as it can lead to hasty financial decisions people might regret later.
"Generally speaking, this probably isn’t the time to go and sell a bunch of stuff," Symthe said.
For younger people who have extra money, Smythe said it's not a bad idea to invest now.
"You might consider putting more money in the stock market while prices are lower," he explained.
If you have a 401K, Smythe said that could be impacted.
"Those who are close to retiring may have to hold off longer than anticipated," he said. "Like me, I’m getting tired of working and I’d like to step back a bit, but the reality is I have to deal with the hand I am being dealt."
Smythe was hoping to retire in five years or so, but said it might not be a good idea.
"If I wanted to retire today, I couldn’t. Even in a couple of years, the odds of the market bouncing back that far, that quickly is probably not that high," he stated.
As for when things will return to normal, Smythe said there's no answer on an exact date.
"Just sort of hold the course. Let the market settle down.," he said.