Should You Sell or Stay Put in the Stock Market?

The stock market just endured its worst day since the financial crisis of last decade. If you’re invested in it through your 401(k) at work, you’re probably wondering: Should I sell or stay put in the market?

Well, money expert Clark Howard has something he wants you to know…

Stocks Take a Nose Dive Over Coronavirus Fears, Oil Price War

It was a Black Monday on Wall Street as the Dow Jones Industrial average plummeted more than 2,000 points and the S&P 500 lost 7% of its value.

Investors were spooked over the spread of coronavirus, with more than 111,000 infections and nearly 4,000 deaths now reported around the world. Domestically, several states including California, New York and Oregon have declared states of emergency to deal with the worsening outbreak.

Meanwhile, adding to the nerves was the news that Saudi Arabia would continue pumping out more oil despite weakened demand around the globe. That headline sent oil prices down and some are now forecasting they could settle around $20 a barrel.

Make no mistake about it: These are scary times. Today was the worst decline in the market since December 2008, the height of the Great Recession.

Stocks got hit hard today, as the sell-off temporarily halted trading earlier today. Every index closed more than 7% down, with the Dow dropping more than 2,000 points. https://t.co/aewvqTZ96m pic.twitter.com/P26kr9gIBd

— CNBC (@CNBC) March 9, 2020

But should you go into full-on panic mode and move to cash? Is now the right time to sell all your stock? Are more financial shocks still yet to come?

As always, Clark aims to be a voice of calm and reason when everyone else is panicking.

“We don’t know how much the stock market is going to decline through this process,” he says. “The stock market has had a long, long, long upward trend. Stocks were, in a polite way, fully valued — probably overvalued — leading into this era of uncertainty.”

“Investors hate uncertainty, and until the dust clears from coronavirus, the market is going to be bumpy. As long as you are invested for the right reasons — saving for your long term — and your money is diversified as it should be appropriate to your age, you just ignore the headlines and hang in there.”

“Markets, even after a painful decline, eventually recover. The younger you are, the more a decline in the market ultimately makes you money down the road because you’re buying everything on sale for what — over your working lifetime — will probably recover many times over.”

Want more words of wisdom from Clark in this time of uncertainty? Listen to him discuss the news of the day here:

Meanwhile, got more questions about your investments? Consider calling our Consumer Action Center.

Contact Clark’s Consumer Action Center — a FREE helpline open Monday-Thursday from 10 a.m. – 7 p.m and Friday from 10 a.m. – 4 p.m. EST. We have volunteers available to answer YOUR concerns! Call Team Clark @ 404-892-8227.