The recent 6% drop in the US stock market may seem alarming, but experts say it’s a typical swing for investors to navigate. The market’s fluctuations are largely driven by uncertainty around President Donald Trump’s tariffs and concerns about the economy’s performance.
In fact, declines bigger than this one have occurred regularly, with some experts viewing them as a necessary correction after optimism runs too high. The S&P 500 has seen similar downturns in recent years, and historians note that investors can’t consistently time the market to buy and sell.
While the overall US stock market has dropped, some corners of the market have performed better, such as stocks outside the United States. Experts advise a diversified portfolio and revisiting old strategies like diversification to mitigate risks.
Younger investors, who have decades until retirement, are advised not to worry about short-term volatility. They can afford to ride out the waves and let their portfolios recover before compounding and growing. Older investors nearing retirement should consider cutting back on withdrawals after sharp market downturns but still maintain a stock portfolio to prepare for potential long-term spending.
Finally, experts emphasize that no one knows when this market volatility will end or begin again.
Source: https://finance.yahoo.com/news/may-want-jump-off-wall-171647327.html