Friday, the stock market took a step back after suffering through a massive drop earlier in the week. On Thursday, Wall Street saw its worst day of the year, dropping 353 points.
The Federal Reserves decision to scale back an economic stimulus program caused markets to plunge Wednesday and Thursday. The Fed started buying bonds after the financial crisis to keep interest rates at record lows. The move helped fuel the economic recovery.
The concern is if the program ends, borrowing costs could increase, potentially slowing down the housing market recovery.
Financial Planner Michael Wittenberg said gold and bond investors were hurt this week. He says all markets realize that later this year, the Federal Reserve will not be as accomodating unless the economy disappoints and grows less robustly than expected.
Wittenberg said the market sometimes over-reacts in a knee-jerk fashion. He says we should expect more volatility, but for as important as the Fed's hints were this week, the actual decline was light.
WFMY News 2