Down, up and down again. It’s been a wild week on Wall Street and the bleeding didn’t stop Thursday as nervous investors continue to sell.
This is the definition of a rollercoaster week. So far, we’ve seen the biggest one day drop in history, a slight rebound and then a more than 1,000-point loss on Thursday.
No one knows when the ride will end and you’re seeing some jump off altogether.
On Monday, when stocks plunged, experts chalked it up to big investors banking their profits.
This is called “correction territory,” where stocks fall at least 10 percent from their highs.
So far, all gains made this year have been erased and the market is not expected to settle down overnight. Because of that, experts like certified Financial Planner Eric Hogarth from Johnson Brunetti in Wethersfield say this is the time for investors to reassess.
“What’s your balance? How much do you have at risk, how much do you have saved? Do you have cash, bonds, stocks and what’s the right mix for you relative to what you’re trying to accomplish,” Hogarth asked.
Once those questions are answered, Hogarth says it’s important to note where you are in life.
He advises long-term investors to stay calm.
“Remember your timeline. Is this money for today or is it for years and years and years out? If it’s for retirement and that’s not a long time for you, it’s okay, that’s what it does,” Hogarth said.
However, people looking for fast returns will have to make a more immediate decision.
“The market moves up and down every day, but if this money is for right now and this is scaring you, you shouldn’t be taking that level of risk,” Hogarth said.
This is not all doom and gloom. Hogarth says there are actually some deals to be had. For example, mainstays like Google, Apple, the railroads, the banks, and oil companies may offer some value during this downtrend.
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