How You Should Respond To The Stock Market Plunge
Stock markets in the U.S. took a plunge at the open Monday, with the Dow Jones Industrial Average falling more than 1,000 points in early trading.
This comes after China’s main stock index dropped more than 8 percent today, in what some are dubbing China’s “Black Monday.”
Here & Now’s Jeremy Hobson looked at what’s happening, and what individual investors should do, with Jill Schlesinger of CBS News.
“It’s such old advice, but it really works. Calm down, don’t do anything, sit still,” Schlesinger advised. “What does this one day signify? Probably not much. For most people, they’ve got diversified portfolios. They don’t have all of their money in stocks. For most people you don’t need your money for a while and hopefully you’re kind of rooting for the market to go down if you’re continuing to contribute to your retirement account or education funds because you’re buying shares at lower prices. So it’s really boring advice to say, ‘Keep cool, stick to your game plan,’ but it actually works.”
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