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Mid-South finance expert explains what’s happening with US stock market

Action News 5 Memphis logo Action News 5 Memphis 1/26/2022 Talya Faggart
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MEMPHIS, Tenn. (WMC) - With inflation still at bay and a volatile start to the market this week a Mid-South finance company wanted to explain what’s happening and offer some general recommendations to consumers.

The financial advisor we spoke to says the biggest catalyst is the market adjusting to a new environment.

During the pandemic, the federal reserve reduced interest rates to zero and took other emergency measures to try and stimulate the economy. What we saw earlier this week is the first time in almost two years that the market has had a 10% drop. That’s according to Matt Syron from Edward Jones Investments.

Mid-South finance expert explains what’s happening with US stock market
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He says we’re officially in what people call a correction.

He says there are things investors should keep in mind, and that includes thinking long-term.

“It’s definitely an emotional time right now,” said Syron. “It’s impossible not to be emotional time, but just try to look at things through the right perspective and don’t let what you’re feeling derail long-term plans.”

With all this in mind, he does recommend having a financial advisor on your side to have a professional perspective.

As for the outlook for major Mid-South companies.

Syron says he has clients who either currently work at or are retired from FedEx and AutoZone.

He says both companies are down about 8% for the calendar year which is close to the overall market. In the long term, Syron says both FedEx and International Paper had been fairly flat over the past few years. With AutoZone stock doing almost 5x higher now than in January of 2017, he says there’s a factor that could contribute to the rise in stock price.

“The appeal with AutoZone is that with new and used car prices where they are, people are more inclined to try and hang on their used vehicles longer and then, of course in doing that need the products and services that AutoZone offers,” said Syron. “So I think that’s really been what has helped them.”

As for FedEx, Syron says the demand is there. Sales have been great but they’ve been hurt by increasing wages, depleting their overall profitability.

With all that in mind, he says they’re solid companies. He expects volatility to stick around but says that doesn’t mean there’s not a great long-term opportunity for folks.

“If you look back over any time period where the Federal Reserve has been raising interest rates, in what they say tightening, the stock market has averaged double digit returns for the two years after that first rate hike,” he said.

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