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Financial Experts: Don't let stock market volatility send you into panic mode

Posted: 11:04 PM, Feb 06, 2018
Updated: 2018-02-07 04:04:39Z

Wall Street bounced back from its biggest loss in six and half years.

The Dow closed up 567 points on Tuesday.

Financial Expert Dave Wentley says Monday’s big loss continued a trend.

“We were overdue for the markets to pull back a bit because of how quickly they've gone up,” he says. Normally you'll see a 10% correction. It could take two months, three months. This all happened in a matter of days.”

What does this mean for you at home?

It depends on what category you fall in.

Wentley says folks in their 20s and 30s should be funding your 401(k).

“Two weeks ago when your money went into your 401(k) plan, you bought the market very high. You bought fewer shares of the mutual friend that you're investing in at a higher cost. You buy in today, you'll be able to buy more shares at a lower cost”

If you're in your 40's and 50's, and haven't put together a retirement plan yet, get on that immediately.

“What am I going to be spending in retirement? How much of this money is earmarked for the first two years of my retirement? That money should already be safely put away,” he says.

He says retirees shouldn't’ make any knee jerk decisions.

“They should not be selling on a day like this. I will say in the short term, things will settle down.”

His final piece of advice goes for any age group - remain calm.

“I would just say to people ride this out. Don't worry about it on a daily basis.”