What you need to know about your finances after the Dow dive

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The Dow Jones Industrial Average saw its biggest point drop in history on Monday.

At the end of the trading day, the Dow was down over 1100 points, more than 4 percent.

The S&P 500 and NASDAQ both ended the day down as well.

At one point not long after noon PT the Dow Jones was down over 1500 points.

By the end of the day, all of the rapid positive growth for the dow in 2018 was wiped away.

“That’s the challenge when you look at the stock market…it’s an escalator ride on the way up so it takes this nice slow path, but it’s an elevator shaft on the way down,” explained Steven Van Metre, a Bakersfield financial planner.

Van Metre argued policy changes at the Federal Reserve contributed to the dive.

Other experts said looming higher interest rates — also set by the Federal Reserve — prompted selling.

Van Metre offered this advice:

“People need to be aware that their 401k and employer sponsored plans are going to start taking a hit. Now most people that have been invested in this past year are still in the positive position, which means that as it continues to drop, they will start to believe they will lose those gains and they will start to sell. The problem is everyone else is too…So my advice would be to review your risk tolerance, review your portfolio and make adjustments as necessary and be prepared for it to get worse. It may not, but be prepared that it will,” explained Van Metre.

The Dow as a whole has seen record breaking growth over the past year climbing near 7,000 points from the time President Trump was inaugurated to two weeks ago.

But when asked to react to Monday’s volatility and steep decline, the White House said the “President’s focus is on our long-term economic fundamentals, which remain exceptionally strong.”

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