The S&P 500 took a massive dive today, leaving many looking at their portfolios worried.
Scott Roycraft is one of many today watching the stock market closely. He told Action News Jax, “My 401(k) took a pretty good hit, but we’re just waiting that out. I don’t need that money right now, so hopefully, by the time I do it will recover.”
Action News Jax asked local economist Don Wiggins what this means for investors.
“If you’re 30 and your portfolio goes down 20 or 30%, I’ve got a long time to make it up,” he said.
Wiggins says the big difference is age.
“As you get older, you should move more of your portfolio out of your stock and two more fixed-income securities.”
He says if you’re over 65, you should already be making moves.
“The older you get, the more you want to move out of market and into bonds because if you’re 65 and the market goes down 30%, you just don’t have as long to recover.”
The dive does not just impact investors — everyone is feeling the impact. Wiggins added, “A lot of people are just not going to drive as much. You’re going to substitute. More hamburgers, less steak.”
Inflation rates mean life is getting more expensive. 25-year-old Colin Taylor says gas is at the front of his mind.
“Well, gas is really the big thing. So you think about going places, you don’t really think about on a day-to-day basis. Now it’s like $5 a gallon, so it’s pretty much every day you’re considering where you’re going point A (to) point B, and how much it’s going to cost you.”
Adding groceries has also become an issue.
Taylor says, “You are just more conscious, even walking up and down the aisle, thinking, do I really need (it) this week, or can I wait a week or whatever?”
Economist Wiggins says during this crunch, keep saving.
“Absolutely, you should not cut back on savings.”
He adds- a few things will impact when relief will come — government action, government stance on energy and geopolitical factors… like the war in Ukraine.
“There’s so many unknowns right now in the economy… nobody can ever say with certainty, but this is even more uncertain than most times,” Wiggins says.
As for when there will be some relief, Wiggins says get ready to wait.
“I think we’re talking six months or a year. It’s going to take that long for federal reserve action to translate.”
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