The stock-market whiplash this week shows why you shouldn't worry too much about your 401(k)
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The stock market had a scary day on Monday and a great day on Thursday; Temporary declines are a normal part of the stock market's cycle; Long-term investments in the market generally recover from slumps; The stock-market downturn on Monday was sparked partly by a rise in panicked speculation about whether a recession was coming; Gideon Drucker, a financial planner, said that temporary market declines are totally normal and expected; According to data compiled by Aswath Damodaran, the stock market has made money over every single 15-year period in history and has significantly outpaced inflation in the long run; Drucker advised that as long as you have your short-term savings and emergency fund properly set up, slumps in stock prices can be a good time to buy; The worst thing you could do during a downturn is panic and sell your stock investments; Selling is the only way that you can turn a temporary decline into a permanent loss; A long-term bet on the US economy is generally a safe one

#StockMarket #Investments #401(k) #Recession #FinancialPlanning

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