mapodile/E+/Getty ImagesFor individual investors, the quick-turn global rout in stocks on Monday was unsettling, even with news Tuesday that there is somewhat of a bounce-back going on.
But if you’re investing in a 401(k), daily market dramas are no reason to take dramatic actions with your portfolio.
Andy Smith, executive director of financial planning at Edelman Financial Engines, puts it this way: “Separate your emotion from your money.
Say you set up a portfolio of 70% stocks and 30% bonds but now it’s morphed into a 60/40 portfolio.
And remind yourself periodically that even bear markets have not stopped the long-term increases in stocks over time.
Persons:
you’re, ” Quincy Krosby, Andy Smith, it’s, Smith
Organizations:
LPL, Edelman