Stocks take a big hit todayMarch 23, 2018
You may have noticed that your investment portfolio was mostly swimming in a sea of red today. This was due to US President Donald Trump’s announcement that he would impose tariffs on Chinese imports in the billions.
Some of the damage that took place:
- Japan’s Nikkei dropped 4.5 percent
- Dow Jones down 724.42 points or 2.93 percent
- S&P 500 down 2.5 percent
- ASX 200 down 2.0 percent
Now it’s not time to panic just yet, many economists don’t think this is the beginning of a recession or even the start of a bear market.
It’s important to not focus on the day-to-day changes of your investment portfolio, look at the big picture. Today’s change will be a drop in the ocean when you look back on your investment performance graph over say a 10 year period.
It’s best to look at it as if a sale is on and it’s time to grab a bargain! The worst thing you can do is panic-sell during a dip like this.
Just about the only thing that was in the green today was precious metals such as Gold. Another reminder that being diversified across all different classes and assets is crucial.
Big players weren’t safe either with Facebook [FB] continuing to fall. (0.96%) Amazon [AMZN] (1.70%) and JPMorgan Chase & Co. [JPM] (4.17%).
Next week will be interesting to see how the markets reacts and if we start to see some very high sell walls.