TURLOCK, Calif. — It's been one day since Wall Street's worst day of 2019. The Dow dropped 800 points and recession concerns started to grow.
Although the market showed a slight recovery on Thursday, people are still worried about the possibility of a downturn.
So ABC10's Lena Howland sat down with the Dean of the College of Business Administration at Stanislaus State in Turlock for answers.
Q: Are we headed toward a recession?
"I don't think we are headed into a deep recession right away. It's normal for economies to slow down, and after 10 years of growth, it is normal for an economy to slow down," Thomas Gomez-Arias, Dean of the College of Business Administration at Stanislaus State said. "There is a slowdown in economic growth in the U.S., that's very real. Does it imply an immediate recession? It doesn't look like it."
Q: How does Wednesday's 3-percent drop in the market impact me?
"When you look at it from the individual's perspective, someone that has stashed away $100,000 for retirement or to buy a home, a 3-percent drop is $3000," Gomez-Arias said. "For some people that might be a lot and for other people, it may not be that meaningful, especially considering that there has been big gains."
Q: Could we see another repeat of 2008?
"The 2008 recession was a one in 100 years kind of recession and it is unlikely that we will have another one as deep and as prolonged for some time," Gomez-Arias said.
Q: Is another recession possible?
"I can tell you there's going to be a recession. I cannot tell you when. That's something true in economics, you can tell what is going to happen, just you cannot tell when," he said.
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