Monday the Dow Jones had it’s largest point drop in history — at one point down 1,600 points.
The big drop comes on the heels of the worst week in the market in more than two years and Friday’s major sell-off. Economists said investors are nervous about inflation and interest rate hikes.
The White House said the fundamentals of the market remain sound but so far that’s not slowing the massive selloff and there’s no guarantee the market will rebound soon. The Dow has been edging into record territory for months now prompting fears of an adjustment.
Local Financial Advisor Brian Ullmann of Ford Financial Group said the key is not to panic. When it comes to planning for retirement chances are you’re in it for the long haul and over-reaction can be a big financial mistake.
“So it’s important to stay put. When markets do what it’s done over the past two days, if you start selling things and making adjustments in the throws of all of this volatility, it’s like fighting in quick sand you’re just going to make it worse for yourself,” said Ullmann.
He said if we do have inflation and higher interest rates borrowing could get more expensive and ultimately investors may pay a little more for a car loan or mortgage.
Ullmann compared the market to going from a drought to a downpour — just stay the course and the market should correct itself.