Volatility is an inevitable part of investing, and financial advisors say most people shouldn’t make any major changes to their portfolio solely because President Donald Trump’s military campaign in Iran is rattling markets. However, it may be a different story for those hoping to retire in the near future.
“The conventional wisdom is, ‘Everybody freeze, no one do anything,’” said Christine Benz, director of personal finance and retirement planning at Morningstar and the author of “How to Retire.”
“But the cohort of people who are quite close to retirement may actually need to take action,” Benz said.
The S&P 500 has see-sawed in recent days as the war expanded in the Middle East and investors feared a spike in oil prices and inflation. Stocks appeared to stabilize on Wednesday, before dropping again in early trading on Thursday.
Volatility could continue as investors continue to digest news from the front lines. Market jumpiness can serve as a good moment for those nearing the end of their career to make sure their nest egg is prepared for a downturn, Benz said.
