The stock market couldn't be more volatile. Just today it was down over two hundred points then it it was up over a hundred then down again, then up again
But finishing down nearly two hundred points.
Moves like that would make just about any investor nervous.
But professional financial specialist and certified public accountant Mitch Freedman says it's definitely not a time to panic.
"We've had these kinds of cycles numerous times over the years, and this is just another one of those cycles," said Freedman.
So Mitch does recommend one strategy, especially if you're an older investor, don't re-invest your dividends and interest, keep it in cash.
"They put that money aside for liquidity so that when the time comes for them to withdraw funds out of those accounts in order to meet their day to day needs, then they don't have to sell as much of their securities at reduced prices," said Freedman.
And when the market does turnaround, it could happen rapidly making it even more difficult, if not impossible, to time the market to buy or sell.
"In order to be a successful market timer, you have to be correct two times. You have to buy at the right time, and you have to sell at the right time," said Freedman.
So what's the answer? Keep on investing.
"Even though the prices are going down, with dollar costs averaging each time they're investing in securities, they're buying more shares," said Freedman.
More shares eventually will mean more money. Although the market could turnaround quickly that doesn't mean things will get back to normal quickly. In fact, investors may have a long wait to recover all of their losses.
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