The stock market’s feverish fall Monday afternoon, punctuated by a nearly 1,600-point intraday drop for the Dow, immediately struck fear in the hearts of many investors and prompted them to reassess their portfolios.
But let’s get real. This is no time to panic.
To be sure, a blizzard of experts in recent weeks have warned that a correction, or 10% drop, was not only overdue but normal and just a matter of time. Even as the Dow Jones Industrial Average broke through the 25,000 benchmark on its way up and galloped past 26,000, the market refused to break stride.
But while Monday’s sizable point drop was scary, especially because it came after Friday’s 666-point drop, the stock market’s gains in recent years remain strong.
And experts say it’s critical not to overreact in the moment. That’s a one-way ticket to losing a fortune.
Instead, take a breath and carefully consider your options.
For starters, the Dow quickly recovered some of the day’s losses and closed down 1,175.21 points, or about 4.6%, to 24,345.75.