Knoxville — The wide swings of stock prices has financial markets and everyday Americans concerned.
And a University of Tennessee economist said Tuesday the troubles may be centered on the technology sector.
“Those kinds of high-tech companies still do not have the profitability that would be suggested by their high stock value,” said Dr. Matt Murray.
“Given where the market is today, and uncertainty about interest rates, I think we’re in for several more weeks of instability,” Murray said.
But Murray says the public may benefit from paying less attention to the day-to-day changes in the stock market.
“We all need to recognize that the stock market is important to wealth creation, but it’s for the long run, not the short term,” Murray said.
The NASDAQ market dropped sharply in recent days, and rose again almost as quickly.