The US stock market is experiencing extreme volatility amid heavy selling and President Trump’s tariff strategy, which has led to the Nasdaq Composite entering bear market territory last week. The S&P 500 briefly hit a bear market, with the Dow Jones Industrial Average shy of its own mark.
However, experts advise against panic selling, emphasizing that it can lead to missing out on gains when the market rebounds. According to an analysis by Fidelity, investing $10,000 in the S&P 500 from January 1, 1988 through December 31, 2023 would have missed out on over $264,000.
Fidelity notes that historically, severe downturns have eventually given way to further growth. Meanwhile, experts like Jim Paulsen and Jamie Dimon warn of potential inflationary outcomes due to tariffs. Federal Reserve Chairman Jerome Powell also reiterated concerns about the impact of tariffs on growth.
Despite uncertainty surrounding the tariff strategy, long-term investors are advised not to panic, as it can lead to better returns in the long run. Experts suggest buying into times of fear like this, when the risk is likely to be lower and the upside greater.
Source: https://www.foxbusiness.com/markets/amid-stock-selloffs-dont-panic-say-experts