MYNORTHWEST NEWS

Economics expert advises not to sell off investments despite current, tumultuous state of the economy

Jun 16, 2022, 5:51 PM | Updated: Oct 19, 2022, 4:40 pm

Traders work on the floor of the New York Stock Exchange (NYSE) on June 16, 2022 in New York City. ...

Traders work on the floor of the New York Stock Exchange (NYSE) on June 16, 2022 in New York City. Stocks fell sharply in morning trading as investors react to the Federal Reserve's largest rate hike since 1994. (Photo by Spencer Platt/Getty Images)

(Photo by Spencer Platt/Getty Images)

Despite rising interest rates, a turbulent stock market, and significant food and gas price jumps, Seattle University Economics Professor Vladimir Dashkeev advises everyone to take a deep breath.

“There is no reason for panic,” Dashkeev said. “We should wait for the pandemic situation to straighten itself out and for the war in Europe to come to an end.”

Ross: A brief history of presidential efforts to fight inflation

More than $40 billion in additional aid to Ukraine was approved by Congress last month, bringing the total U.S. commitment during the Russian invasion to roughly $54 billion, when combined with the aid package passed in March.

Dashkeev joined the Albers School of Business and Economics at Seattle University after earning his Ph.D. in economics from the University of Washington. His research areas are macroeconomics, international macroeconomics, and fiscal policy.

Dashkeev also believes we haven’t seen the last of the federal government raising interest rates in hopes that increased interest rates will slow inflation down.

The U.S. is facing the most significant percentage rate hike since 1994, making home mortgages, car loans, and credit cards even more expensive.

But Dashkeev is not advising people to sell stocks or bust 401Ks and IRAs.

“Already the decline in the market has started and you’re probably not going to be able to recoup your original investments right now.” Dashkeev instead advises to ride out the market and only sell stocks that have lost the least.

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Economics expert advises not to sell off investments despite current, tumultuous state of the economy