CORPUS CHRISTI, Texas – Tuesday was one of the worst days in stock market history as the Dow Jones lost more than 2,000 points.
The drop is fueled by concerns about the coronavirus. Even for some seasoned investors, the past week has been overwhelming. But what if you are new to it? How much should you care about your wallet?
Travis Cruger of Cruger Financial Services watched global financial markets plunge again on Monday. Despite the Dow Jones falling over 2,000 points and the S&P 500 down 226 points, he said, now is not the time to panic.
“Buy low and sell high,” Cruger said. “A lot of investors are emotional and see the news headlines and CNBC and the talking heads and they think they have to sell it all and it’s usually the wrong time to do it.”
Many investors are worried about the global spread of the coronavirus as well as a growing oil war between Saudi Arabia and Russia. Uncertainty led to many dumping actions and with a drastic opening selloff, trading on the New York Stock Exchange was halted for 15 minutes to avoid a crash. Does this mean that a recession is possible?
According to Cruger, “Keep in mind that people don’t lose money until they sell. The market has already recovered from 8 am and it has recovered from every correction since then. So stay the course. “
There is good news for those contributing to a 401-K. Every contribution you make now will be at a better price than what you paid in early February. One market that you might want to invest money in is the housing market.
Cruger says, “If buying a home is right for you right now, it’s definitely a great time to buy a home with interest rates so low.
Currently, fixed 30-year interest rates are between 3 and 2, so it’s a good time to buy. When it comes to the recent fall in the stock market, many analysts say we need to stay the course because historically the market has always rebounded.