(CNN) - The fiscal impact of the coronavirus is spreading. Fears of a pandemic rattled global markets for a fifth consecutive trading session.
Should you be concerned about your retirement account after a bad week on Wall Street? Not necessarily, an expert said. (Source: NYSE/CNN)
So how is this impacting your 401k and other retirement investments?
Experts weigh in on who should be the most worried about about this sudden market fall.
“I think everyone is uncomfortable,” said Chris Burns, CEO of DynamicMoney.com. “The market is more like my 4-year old than it is like a college professor. It’s not some logical entity."
Investors are concerned the virus will negatively impact consumer demand and disrupt manufacturing supply chains in major industries.
So far this trading week, the Dow index has lost more than 2,000 total points.
"It’s a big drop. So what the normal person does then is say, ‘I want control and so therefore I’ll sell off. I’ll go ahead and go to safety.’ And that could be one of the most damaging things for your portfolio,” Burns said.
Is your nest egg safe? Experts say, historically, markets have rebounded from previous outbreaks and that this is just a short-lived blip in the market.
People close to retirement who have been more aggressive than they otherwise would be should be the most vigilant.
“I’m worried the most about those people because if we see a significant drop and they haven’t adjusted their portfolio to be realistic as they move to to retirement, that could be really damaging for them,” Burns said.
For the rest of us, experts said don’t panic and continue to add to your 401K and investing in the stock market.
“Now might be the time you need to adjust and go I’m going to take this seriously, so, whether it’s this specific situation that causes us to go into a recession or it’s something months from now, that I’m actually ready," Burns said.
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