SPRINGFIELD, Mass. (WWLP)- The U.S. stock market had a late day sell off to cap a tough week of losses.
U.S. stocks have been volatile over the past week, as worry on Wall Street increases over China’s slowing economy. The Dow Jones Industrial Average fell 167 points Friday and reported a 6.2% weekly decline. Oil prices are at a 12 year low struggling to keep $33 a barrel, and overall it’s been the worst first week start to a year for the U.S. stock market on record.
Financial analysts say it’s the difference between the low price of oil and the high price of the U.S. dollar that has people worried. But advisors say you shouldn’t let fear take over your decisions.
On Friday, the U.S. government reported adding 299,000 jobs, and China’s stock market stopped crashing and ended up 2% Friday. Trading in China was stopped twice this week.
Raymond and James Financial Advisor Mark Teed told 22News, “This is a chance to buy not sell, to be greedy buy when things are awful and not sell but people their instinct will tell them to sell and you can’t do that.”
So why shouldn’t you cash out when the U.S. dollar is strong?
Financial advisor Mark Teed told 22News people should be thinking long term, “You have to always invest in outpacing inflation and that generally over the last 200 years has been stocks and not bonds or cash.”
Teed said if you cash out early, returns for a retirement savings on average are about 70% less than your fund would produce over the same period of time.
The Dow, S & P 500 and the Nasdaq Indexes were both down about 1 percent Friday.