HUNTSVILLE, Ala. (WAFF) – The stock market saw a significant decline on Monday, with the Dow Jones dropping more than 1,000 points.
“The stock market is an emotional thing,” Brad Williams, President of Retirement Income Source said. “It’s either fear or greed.”
As Williams sees it said, Monday’s result favored fear.
Economists believe this drop came from discouraging employment numbers from the end of July. On top of that, international markets like Japan aren’t showing any signs of speeding up.
Williams said this could be concerning for those closer to retirement.
“One thing you have when you’re younger is time, and investing is all about time and risk,” he said. “The more time you have, the more risk you can take. As that clock winds down, you don’t have the opportunity of the years to recover, so you may find that your retirement is not what it was.”
As Jay McGowan with the Welch Group believes, it’s not all doom and gloom.
“I don’t think anything going on right now is something worry about in it of itself,” he said. “These things happen, but I think it may be a wake up call for people to understand what their portfolio, what it is that they own, why they own it, and what it does for them, in particular.”
For those not close to retirement, he said this may be a good time to look at creating investments.
“For somebody that’s young in their 20′s, 30′s, and 40′s who have accumulated wealth toward retirement, I wouldn’t be too concerned about what’s going on right now,” he said. “I look at it as an opportunity to rebalance your portfolio and take advantage of some of the downside volatility.”
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