INDIANAPOLIS (WISH) — This was not the day to check the balance in your 401K retirement account as stocks made a historic drop on Wall Street.
But experts say it’s not a time to panic.
Most of us have money in the stock market, through stocks, 401K accounts or both, and that means that most of lost money Monday.
The sell off at the opening of the New York Stock Exchange is the result of a slowing economy in China.
A drop in oil prices is also a contributing factor.
The market correction was anticipated, but this one was huge, going over 1,000 points early in the day.
“It was the biggest one-day drop we’ve seen in the Dow Jones Industrial Average in history,” said financial reporter Jane King.
But at the north side office of investment adviser Chris Douglas there were few clients on the phone.
“Our clients are well advised,” said Douglas, “and they know that in the middle of turmoil is not the time to be overreacting.”
And the stock drop got little notice on Monument Circle, where Dylan Mannakee enjoyed the sunshine. “I’m not particularly worried about the stock market, quite honestly,” he said. “I got my money in 401K and it’s gonna come back up.”
“If you just leave it in and let the stock market come back it always does,” said his friend, Kevin Banholzer. “(You) get your money back.”
That’s the same thing the experts will tell you.
“Those who sold stocks in the great recession in 2009 lost half their money,” said Jane King. “Those who waited it out gained everything back in 3 years and over the last 5 years have seen their investments rise 61 percent.”
Chris Douglas gives clients a simple piece of advice, “This market movement is nothing to panic about.”
And by the end of the day things got better as the Dow Jones was down more than 580 points at the close.
That’s a bad day, but not the kind of record day that it started out to be.