Amid the ongoing trade war, the stock market is experiencing a significant downturn. Experts typically advise against panicking during such market conditions, but it can be challenging to remain calm. Investors worried about their portfolios during the sell-off are seeking guidance from market professionals.
Recent events have seen a substantial drop in the stock market, with the Dow Jones Industrial Average plummeting by over 2,200 points on Friday. This decline, coupled with Thursday's losses, has wiped out more than $5 trillion in market value. Regardless of the sector, all parts of the S&P 500 have been affected, marking the worst week for the market since the early stages of the COVID-19 pandemic in 2020.
During these uncertain times, individuals may feel the urge to check their investments and contemplate their next steps. While the advice is commonly "don't panic," the temptation to make impulsive decisions can be strong, especially when faced with losses in one's investment portfolio.
Although it is crucial to remember that markets tend to recover over time, adjustments may be necessary for certain circumstances. Some general recommendations to help navigate through the turmoil include avoiding selling assets when the market is down, as sharp declines are often followed by rebounds. Additionally, identifying safe-haven options like cyclical and defensive stocks, as well as traditional safe investments like gold and Treasurys, can help weather the storm.
It is essential to ensure that one's portfolio is diversified and prepared to withstand challenging market conditions, according to market experts.