The odds are against that happening because of the economy's market-driven nature, Landsburg said. Historically speaking, stock market volatility hasn't seemed to play a role in creating a slowdown mentality, another professor said. Though the market dramatically declined in both October 1987 and October 1989, the economy did not fall into a recession either time, said G. William Schwert , another professor of economics at the Simon school. The current market slump seems to be based on well-founded concerns about the future, Schwert said. I think that investors are reacting to news about profits, earnings and future growth opportunities.
Some business owners say consumers are starting to react, too.
Furniture is not on the top of the list when the economy isn't good. But other businesses aren't seeing a slowdown. Chase-Pitkin Home and Garden President Bill Strassburg said that while the late winter weather has cut down trade in the patio and garden areas, that has been offset by sales increases in the kitchen and bath departments. Our installed business overall is up 48 percent, and most of that is big-ticket items. Charlotte Furniture and Appliance's President Jim Agostinelli went to see the firm's accountant late last week with trepidation, but came back to the store with a smile on his face.