WINDSOR — A business expert is telling people to remain calm after major fluctuations in the markets this week.
The markets experience two of its largest drops since 2008.
Speaking on AM800's the Morning Drive, BNN Bloomberg's Amanda Lang says the markets are reacting to 'fear' due to the Coronavirus.
"We are already seeing airlines and travel companies and cruise companies, who wants to go on a cruise now, all of that is drying up," she says. "The kinda longer term stuff, this is where Canadians and Canadian businesses should start thinking about your supply chain and work disruption."
She also points out the markets were on its longest run upwards in history.
Canada's main stock index suffered its worst day in four-and-a-half years yesterday falling 385 points.
Lang says long-term investors shouldn't worry about the drops this week.
"When it comes to the stock market, my advice is always the same," she says. "If you need your money for the long-term when its in stock, don't look at stock markets except for maybe once a year. They will go up and down, over the long term 8 percent a year, it is what you should expect to get, don't worry about big gains or big losses."
However, she says if people need the money sooner than long-term, "Let's say that is 7 to 10 years, think about how exposed you want to be. If you are older, a lot of older people have more money in stocks, because it is the only way to make money and actually might be worth thinking about whether you should lighten up a bit."
Lang points out small businesses, in particular, are most vulnerable to these economic changes saying it may be a good exercise for small business owners to think about how they would adjust if their employees can't get to work, or if their suppliers shut down for a few weeks.
Lang hosts her show "Exponential" on AM800 on Sundays at 12pm.