Amid stock market volatility, it’s critical to avoid emotional moves that could stunt long-term portfolio growth, financial experts say.
U.S. stocks on Monday plunged as part of a global sell-off fueled by U.S. recession fears. The U.S. dip followed a more than 12% drop for Japan’s Nikkei 225, its biggest one-day loss since Wall Street’s 1987 Black Monday crash.
The Dow Jones Industrial Average earlier Monday fell by more than 1,200 points but recovered slightly to 1,032 points, or 2.6% down, by about 3 p.m. ET. Meanwhile, the Nasdaq Composite dropped 3.9% and the S&P 500 lost 3.2%.
“Don’t panic and make some crazy, rash decision that veers away from your game plan,” warned certified financial planner Lee Baker, owner of Apex Financial Services in Atlanta.
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