It was a wild ride for investors and anyone with a 401(k) this week, as the stock market dropped and rose like a rollercoaster.
“You just can’t panic on a bad day,” said Mike Callahan, who lives in Martin County and works in West Palm Beach.
“The best decision I ever made investing was just like, wait, not try to sell when the market is down.”
And that is the advice from money experts.
“I’m sure Warren Buffet wasn’t worried about what happened this week,” said Keith Singer of Singer Wealth in Boca Raton.
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What short-term market volatility means for your 401(k)
He says it’s common for the market to have a dip of around 5% at some point every year, but overall the market does climb over the long term.
“That volatility is the price we pay to get returns in the stock market over long periods of time,” he said.
Still, it can be painful for many looking at their 401(k) accounts drop in value, especially for those retired or near retirement.
“If you don’t like the volatility there are other things out there that you can invest in,” Singer said.
He adds, after this week, the outlook doesn’t seem to be too bad.
“I would think overall that this year with interest rates about to go down and it being an election year, I would expect we have a pretty decent end of the year.”
