A massive market sell-off in the US can be unsettling, especially when it's triggered by unfavorable economic indicators, like the lackluster July jobs report that added only 114,400 new jobs, below economists' expectations, causing the unemployment rate to jump to 4.3% from 4.1% .
In situations like this, it's essential to keep calm and avoid making impulsive decisions. Remember, you don't officially lose money in the stock market until you sell your investments when their value is down .
What to Do Instead:
- _Stay the Course_: Take a deep breath and remind yourself that you're in it for the long haul.
- _Consider Buying_: If you have cash on hand, some stocks you've been eyeing might be on sale after months of inflated prices.
- _Diversify Your Portfolio_: You could also invest in an S&P 500 ETF, which lets you invest in the broad market.
It's also worth noting that a market sell-off can be an opportunity to buy discounted stocks. Historically, the stock market has recovered from downturns, and patience is often rewarded .
