After Tough Day, Should Investors be Worried?
Stock sinking isn’t a reason to stray from your financial plan.
Stocks sunk on Wednesday, with the Dow and S&P 500 each down more than 3% and the Nasdaq shedding more than 4%.
The tech-led selloff is the worst in months and comes amid rising bond yields and trade worries.
What does this mean for investors? Potentially not much. Investors with a long time horizon and plenty of cash to cover any near-term expenses can ride out any short-term volatility.
But days like today can serve as a good reminder to ensure your asset allocation is still where you want it to be. And if it isn’t, rebalancing could be order. If you’ve been sitting on more cash than you’d like, it is worth starting to look for any bargains that may open up.