Don't over-react to market volatility
For most of us, those year-end retirement and brokerage account statements are going to be really depressing, so resolve not to panic and make any rash financial decisions when they arrive.
Greg McBride, chief financial analyst at Bankrate.com, says the recent volatility in the stock market is to be expected because of recent interest rate hikes and trade disputes.
"It was an ugly fourth quarter in the stock market, so brace yourself. When you open that year-end account statement for your 401(k) or your brokerage account, you're not going to like the numbers you see,” McBride said. “Don't make any knee-jerk reactions that can do damage to your long-term financial security based on some short-term volatility. The economy is still in pretty decent shape."
Remember: Short-term savings don't belong in stocks. That's where you invest money you won't need for a long time.
“The money you have in the stock market is money that ideally, you're not going to touch for quite some time, for five or even 10 years at the very least. You can afford to ride-out the current volatility.”