Radford University finance professor discusses the stock market with local news outlets

College of Business and Economics Professor Steven Beach discussed the recent stock market ups and downs with two local media channels.

• During a recent interview with WDBJ Channel 7, Radford University finance professor Steven Beach predicted the market would rebound. The stock market has recovered after a drop following the Brexit vote in Great Britain, but will it stay that way? He said the market dropped around 5%, but has grown back and then some. However, he said this new growth, and the growth following the crisis of 2008, may not be sustainable based on how it's been achieved. "That's been predicated primarily on cutting costs, on strong management of the firms, but without growing revenues, without growing sales," Beach explained. "We're going to need to see, at some point, growth in revenue, in sales, the economy really picking up to indicate that we can sustain the strong valuations that are in the marketplace."
• The U.S. stock market has gone from one extreme to the other over the last few weeks, and that has some experts worried. Radford University finance professor Steven Beach talked wtih WSLS Channel 10 about the recent ups and downs. Just after the United Kingdom voted to leave the European Union, stocks dropped off stateside, as was expected. But days later, the market skyrocketed to all time highs in some cases. While many are cashing in, some say it is time for investors to brace themselves. “I think every time when you hit a new high, people are concerned the only direction to go is down. It can be sustained,” said Radford University finance professor Steven Beach. “I do think we have some underlying issues in the economy that lead people to have some fear.” Beach said he predicts it will take a couple years before the United Kingdom suffers any significant setbacks from its EU exit.