Experts say the stock market will recover – and that a long-term investment like a 401(k) will weather the storm – from the beating Wall Street took Monday, likely over growing worries about the intensifying trade war between China and the Trump Administration.
Monday saw the biggest declines of the year, with the DOW dropping some 760 points.
The tumble came after China’s central bank allowed its currency, to fall to its lowest level against the U.S. dollar in more than 10 years.
President Trump has accused China of manipulating its currency.
One financial planner tells WFXR that America has been through worse, and that saving early and diversifying is as good advice as ever.
“I wish I knew more,” said Max Gladieux, a high school student. “I feel like I should be informed about it more and there should be classes about it at my school.”
Many Americans aren’t sure what to make of Monday’s stock market performance – the biggest stock dip 2019 has seen so far.
“Certainly, yeah. It concerns everybody that looks at it. But, you know, there’s only so much you can do about it,” said Jerry Layne, who is 15 years from retirement.
He says he wonders what impact it’ll have on his 401(k).
Certified Financial Planner Christian DePaul says not much.
“I would say not to worry. Relax, take a deep breath – these things happen, and every single time it’s happened before, it’s come back,” said DePaul.
He says – even though Trump’s tariffs had an effect on the downturn – no president can take complete credit for the economy, good or bad, especially after a Federal Reserve rate decrease.
He recommends his clients don’t do anything drastic, especially if they’re spreading out the way they save their money.
“Balance at this stage in the game, you are going to see less of a drop in your personal investments, whether it’s a 401(k) or their IRAs,” he said.
He adds that there’s no reason to think the economy won’t recover now after it did in 2008, for example.
His biggest piece of advice: “The sooner that they can put money into the game, the quicker it’s going to amass.”