SAN DIEGO — The Dow Jones fell more than a thousand points on Monday. The Nasdaq dropped significantly after investors dumped tech stocks.
This after Japan’s Nikkei plunged 12 percent, marking the worse day since 1987.
“The economy is definitely slowing down. There’s no question,” said David Reyes, Reyes Financial Architecture.
The San Diego based financial advisor says this is the time of year for a volatile stock market, and it was expected to happen.
“October 2022 was kind of a low. The market’s really been kind of on fire since then. The reality right now, it’s more of a normal kind of correction,” said Reyes.
The market is reacting to the jobs report the U.S. Department of Labor released on Friday.
Unemployment rose from 4.1% to 4.3%, the highest in three years, and hiring is much slower than experts expected.
“The economy, you got the election, interest rates, geopolitical figures. You have really four things that are driving the markets right now,” said Reyes.
Working for You, we asked Reyes what the shaky market means and how it impacts your money.
“If you’re in your 20s, 30s, even 40s, my best advice, just keep saving your money. Maximize your 401k’s,” said Reyes.
Financial experts say there is no need to panic and sell off stocks, but they do recommend retirees or those close to retirement need to manage their risk.
“If you’re 55 plus, you need to start really paying attention, because your nest egg you have is a lot more than what you’re saving every month,” said Reyes.
He says this financial advice applies to all kinds of savers. Whether it be teachers or corporate executives, the principals to protect your money remain the same.
“People don’t have money because they were great stock pickers, they saved their money. Save your money. Make sure your allocations are appropriate for you, so you don't get so nervous when market volatility happens like this, and that will keep you sane and keep you from making rash decisions,” said Reyes.
The Federal Reserve is expected to cut interest rates in September.
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