Mary: This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program asks if investing will change post-crisis. Mike, as the coronavirus took hold of the country, we saw some of the biggest drops in the stock market ever. Since the initial shock there has been some rebound, but clearly investors in many companies have still lost big money. Do you think this will result in some permanent changes in investor behavior?
Mike: Summary Answer
- Likely not
- Investors in the stock market know there are risks
- They also know that there can be risks that very few people could foresee and plan for
- The coronavirus is a good example
- Still, these unforeseen risks are part of investing
- So most experts think investors will still put money in stocks
- Of course, the particular stocks could change – companies engaged in distance working and distance education, for example, could see more money put in them
- But in terms of accepting risk for the possibility of a great return – investors will still do that
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.