The General Electric logo appears above a trading post on the floor of the New York Stock Exchange, Tuesday, Oct. 24, 2017. (AP Photo/Richard Drew)
SALT LAKE CITY — Volatility in the stock market may make good headlines, but overall, it’s to be expected, according to experts.
DMBA Financial Planner Shane Stewart says you can think of a drop in the markets as a really good sale – something all Americans love.
“You would never go into your favorite department store and say, ‘Wow, I love that sweater. Can you call me when it’s not on sale?'” he says.
Instead, Stewart says, a down stock market is the best time to invest and stay invested. Zions Bank Senior Economist Robert Spendlove agrees.
“It’s actually – a down market is a great buying opportunity,” he says. “Essentially, stocks are on sale. And so you have a chance to get in on some of those same stocks at a much lower level.”
Spendlove advises taking a ‘long view’ of the stock market. Markets need volatility, he says, because it creates breathing room.
“This is what markets are about,” he adds. “Sometimes there needs to be a clearing out of overall markets and it’s not bad.”
“The best course of action is to stay the course even when markets are down,” Stewart says.
And despite the recent sell-offs on Wall Street, most people seem optimistic. A recent nationwide survey from Kiplinger’s Personal Finance found more than half of 35 to 64-year-olds surveyed were confident or very confident they’d have enough money in the bank by the time they retire. The same survey found most Americans’ top worry is the health care, not the stock market.
Wednesday, KSL will look at how politics affect the economy, from trade wars and tariffs to the partial government shutdown.