December 10, 2018 08:34 AM
The Dow, S&P 500 and NASDAQ all posted their worst weekly performances since the spring and many blame the U.S.-China trade war for the economic slowdown.
This past week, the Dow dropped 4.5-percent, S&P dropped 4.6-percent, and NASDAQ dropped 4.9-percent.
Last weekend’s G-20 summit didn't bring any significant concessions by China, making stock investors nervous about whether the United States and China could make a concrete trade deal.
In response to the fears, investors sold off, driving the markets, and your 401(k), down.
“Markets don’t like uncertainty,” George Conboy, chairman of Brighton Securities and local financial expert said.
“You have uncertainty around trade, uncertainty around politics; the more uncertainty you have the more volatility you will have,” Conboy said.
“Over the last 30 years, the S&P has been down for the calendar year six times, so it’s not unreasonable to expect it’ll be down this year,” said Conboy. “U.S. markets are in the red so far this year."
Conboy says investors ready to retire are the ones who should worry.
“If you're about to retire tomorrow the assets you had may be worth less," Conboy said. "That’s a concern if you need those assets to generate income.”
It’s not all bad news. Conboy says the current market is perfect for young investors to save and buy for their future.
“Our economy is sound and healthy. If it continues to be sound and healthy it will recover just fine. Will it take a week, a month; a year? That’s what we don't know,” explained Conboy.
The market futures also declined, adding to the steep loss seen.
Updated: December 10, 2018 08:34 AM
Created: December 09, 2018 09:41 PM
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