JACKSONVILLE, Fla. — It's been a tough week on Wall Street.
The Dow Jones Industrial Average dropped 357 points Friday to close out February about 13% below its peak trading. The S&P 500 also posted losses of 12% on the week.
Market experts say the spread of coronavirus is causing the sell-off, and things could continue to drop before the correction is complete.
“This is typical as markets move day-in and day-out,” said Sean Davis, professor of finance at UNF.
Those market moves are drawing a lot of attention. This week, the Dow Jones Industrial Average erased about six months of gains.
What does that mean for the average investor – one who’s saving up for retirement? Davis said right now, not much.
“Remember the best strategy is to stay invested in the market and hold more for the long term,” Davis said.
He said those nearing retirement or already drawing on their 401(k) should be in less risky investments such as bonds. Those in it for the long haul might want to look at history as a guide.
Davis said at the end of 2018 when a near 20% drop in the market led to impulsive decisions, there was a bigger lesson for some to learn.
“One of the common mistakes is people will use fear to drive their investment to make decisions and step out of the market," Davis said. "Then they miss out on the market turning around and going back up."