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Billings financial advisor: Rocky days for stocks not over - KTVQ.com | Q2 | Continuous News Coverage | Billings, MT

Billings financial advisor: Rocky days for stocks not over

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BILLINGS - The Dow suffered a record drop Monday, and investors say the market may be still be facing still headwinds.

Billings investment adviser Gary Buchanan said markets are getting nervous about the government's increasing supply of red ink.

“The market has absolutely started to look at debt and deficit. You know, closing the government, obviously doesn't bother the market. But the talk about debt and deficits...the tax cut, a trillion dollars, another trillion on infrastructure. Both parties afraid to use the word debt. Democrats usually avoid talking about debt. Republicans seem to have forgotten about debt. The market is starting to realize that we have a deficit issue,” Buchanan said.

Buchanan added that he expects more rocky days this week.

“Today was a big ouch. A lot of selling. Remember the market, everyone has said it's overvalued. People like me like to say I told you so, and I can't get away with that completely. But all of us have been nervous with valuations of stocks, particularly price earnings. So it took a hit. Thursday, Friday and today lead to those numbers," Buchanan said. 

The Dow lost 1,175 points Monday on, ironically, Federal Reserve Chairman Jerome Powell's first day on the job.

The one-day drop of 4.6 percent drop was the largest decline in seven years.

The market had been on a tear over the last few months, eclipsing 24,000 points before losing all of 2018's gain in one three-day period.

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