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Buckle up, for volatility is back in Wall Street – Why you should still keep investing

Anna Johnson Anna Johnson , 4/9/2018
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Off late, the Dow sunk by a record 1175 points and later on the index ended the day by being up for more than 500 points. If you’re a potential investor, the wild movements of the share market can be scary, especially for those who are still not being considered as seasoned investors and those who haven’t ever seen stocks going down. But does that mean that you will fret to get out of the market?

It’s true that none of us prefers losing money but before taking the plunge into a market, it is imperative that you take a bigger-picture and long term view. Making instant decisions in short-term volatility is not something recommendable. The Dow Jones has raced higher by 25% in 2017 and investors have become habituated to see their 401(k)s flourish.

Such a huge drop can seek attention of all traders but at the same time it also offers a new door of opportunities. The stock market is the only place where people don’t touch anything when they’re put on sale. As soon as the price soars higher, people want to buy it. Tangible financial assets like real estate are generally appealing for investors due to the diversification it offers. Nevertheless, if you’re in for a long term, the stock market will definitely produce best results based on the history of markets. If you’re a mobile trader, you can install a trading app in your phone for added convenience.

Experts are of the opinion that the key to stock market investment is having a well-proved plan. Determine the total amount you can choose to invest, set a realistic goal and analyze your level of risk tolerance. The sooner you begin to invest, the more time you can give your money to grow. In case you choose to save for an event which is decades away, you can benefit by starting off early.

Michael Bonnet claims that the current fluctuations on the Wall Street offer buying opportunities to the traders who plan to invest in their IRA. With a crash or a correction, it is possible to receive investments for a cheap amount. For all the people who are already there in the market and who are worried about investing their dollars, experts suggest that this is definitely the best time to evaluate your diversified portfolio and ensure you can remain comfortable with allocation of your assets.

Stocks are usually more volatile than bonds but they get you better returns than bonds. Don’t make the mistake of thinking that a 4% decline in Dow will not mean that your investment portfolio also suffered a same sized hit. If you were clever enough to diversify your investment portfolio, no matter which way the market is turning, your investment will reap you good returns.

So, despite the vivid fluctuations in the stock market, you should still continue investing in the stock market as the financial gurus say that this is the best time to reap returns.