After zooming to stunning, historic heights in recent months, the stock market is experiencing a major sell-off right now, closing Monday just over 1,100 points down. At one point during the afternoon, it was down almost 1,600 points. Ironically, one contributing factor is better-than-expected economic news with rising wages, which is spooking some economists to fear the dreaded inflation and creeping interest rates. The same scenario is occurring worldwide.
A loss of a thousand-plus sounds dramatic but, percentage-wise, is much smaller than it used to be. I’m no financial advisor and shouldn’t be thought of as such, but it takes no genius to realize that a strategy of “buy high, sell low” is no way to corner the market on anything but stupidity. The market has skyrocketed over the past year, so a correction was inevitable. Long-term investors, keep in mind: as long as you don’t sell, the loss is just on paper, and the business climate is still sensational. In situations like this, advisors typically say to take your blood pressure meds and hang on for the ride.