What investors should do when there is more volatility in the market

Find Insider Deals for items perfect around the house and on the goTrader Gregory Rowe works on the floor of the New York Stock Exchange, Monday, Aug. 5, 2024. , but the average investor may still be understandably spooked. Over a three day losing streak, the S&P 500 dipped more than 6% before rallying again Tuesday, up 1.6% in midday trading.

“For everyday investors, volatility is the price you pay to be invested in the stock market,” Silver said. “But it’s very unsettling when we see big market drops of two to three percent… It’s a little unnerving for people who have their money in 401’s or IRA’s or retirement funds to watch this magnitude of volatility.”

In terms of selling, though, he said the best advice for most investors is to do nothing and wait for the volatility to cool down.“Whenever you invest in stocks it’s important to be mindful of your time horizon,” said Alev. “For instance, do you expect you’ll need to liquidate in the near future? In that case, you’re likely better off opting for a less volatile and more risk-averse mode of growing your money, such as a high-yield savings account.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Big tech stocks got clobbered on Monday — What investors are looking for before they buy moreA sharp sell-off in 2024's winning names has left investors wondering whether it's safe to scoop up technology shares.
Source: CNBC - 🏆 12. / 72 Read more »

Stocks Plunge As Traders Realize It’s Monday And They Have To Go To WorkNEW YORK—In what experts are calling an economic downturn that could deliver shocks to markets for months to come, stocks plunged Monday as traders realized it was the beginning of the week and that they had to go to work.
Source: TheOnion - 🏆 724. / 51 Read more »