What does Warren Buffett say to do when the markets are down?

Although financial markets tried to recover on Tuesday, they were in the midst of an extended sell-off that punished some of the biggest names in stocks.

The Dow Jones Industrial Average’s seven-week slump is the longest since 2001, while the S&P’s six-week streak of losses is the longest since June 2011, CNBC reports.

While many investors saving for retirement may wonder what to do in such a turbulent market, Warren Buffett said the answer is simple: Try not to worry too much about it.

“I would like to say [investors]Don’t keep a close eye on the market,” Buffett told CNBC in 2016 during a period of wild market volatility.

The Oracle of Omaha added that investors who buy “good companies” over time will see results 10, 20 and 30 years down the road. “If they’re trying to buy and sell shares, they’re not going to do very well,” he said. “Money from investing is made by owning good companies for long periods of time. That’s what people should do with stocks.”

Many experts, including Buffett, recommend buying index funds, which are automatically diversified and hold each stock in the index. The S&P 500, for example, includes big-name American companies such as Apple and Amazon.

Like Buffett, the late legendary investor Jack Bogle also recommended a buy-and-hold strategy. He previously told CNBC that buying and holding stocks is the best way to invest because “your emotions will absolutely defeat you” if you try to sell your holdings to avoid losses and then come back.

Bogle said in 2018, “Keep on track. Don’t let these market changes, even the big ones [like the financial crisis] …Change your mind and you will never, ever, ever enter the market. Always be at a certain level.”

For most investors, trying to respond to market trends is likely to backfire, financial experts tell CNBC Make It. It is better to wait for the rise and fall of the market.

If you miss recovery, there is a very good chance that you will make it difficult to achieve your financial goals.

Sean M Pearson

Financial advisor, Ameriprise Financial

“If you have a diversified wallet, if you only buy some [index funds] And you have a long enough time horizon, you might just be better off riding this roller coaster,” says Ashton Lawrence, certified financial planner and partner at Goldfinch Wealth Management.

Sean M says

“The markets don’t stabilize, they stabilize,” he says. “By the time the news looks a little better, the market has already recovered. And if you miss the recovery, there’s a very, very good chance that you’re going to make it harder to achieve your financial goals.”

Instead, most investors may want to ignore their 401(k) accounts instead of checking them every day, Pearson says.

“I’ve been a professional investor for over 20 years and haven’t logged into a 401(k) since the beginning of this [slide], “Says.” For many people, not looking at this may be the best way to help them sleep at night. “

Open an account now: Get smarter about your finances and career with our weekly newsletter

do not miss: This is Kevin O’Leary’s #1 job interview tip

Leave a Comment