Embrace the volatility of the markets and stay with your original investment plan, financial experts say CNBC 3 hrs ago
The U.S. stock market is back in choppy waters.
On Wednesday, all three major U.S. indices the Dow, S&P 500 and Nasdaq slid on fears that rising inflation will lead to higher prices and boost interest rates, capping off a three-day losing streak in the market.
But on Thursday, stocks reversed course, ripping higher, led by so-called reopening trades such as airlines and cruise companies.
Such fluctuations can be worrying for investors, and especially for those who are in or near retirement. Yet, financial advisors say that the best course of action when markets go sideways is to stick with your previous investment plan.
But on Thursday, stocks reversed course, ripping higher, led by so-called reopening trades such as airlines and cruise companies.
Such fluctuations can be worrying for investors, and especially for those who are in or near retirement. Yet, financial advisors say that the best course of action when markets go sideways is to stick with your previous investment plan.
Volatility can be your friend
First, accept market volatility which is relatively common as a normal part of the process of investing and the best way to outrun inflation, said certified financial planner Brad Lineberger, president of Carlsbad, California-based Seaside Wealth Management, which manages about $165 million in assets.