All three major U.S. stock indexes dropped sharply in Monday morning trading, with investors worried about the uncertainty of tariffs imposed by President Donald Trump on key trading partners and then his refusal to rule out the possibility of a U.S. recession in the coming months.
Unless you’re retiring soon this won’t really be an issue as the eventual rebound will cancel out the losses and any contributions you make in a down market are worth more than in a booming market. For those retiring soon, your money shouldn’t be in stocks as they’re too volatile.
And for anyone who things this is a permanent collapse, if that’s the case then your retirement is worthless regardless of where you have it stored.
I’ve invested all of my retirement savings in bottle caps. I think I’ll be fine.
That’s all true, but there are many people who are planning to retire soon. There are also people who a college saving fund for their kids that is tied to the market, so now their kid’s college fund is much smaller. Depending on how much the market drops, it could really screw over a crop of kids trying to go to school in the near future with other kids their own age.