Kiplinger

The Economy Is Fine: 7 Reasons Investors Shouldn't Panic

The stock market just landed a stunning one-two punch to investors' portfolios. The Dow Jones Industrial Average dropped 666 points, or 2.5%, on Friday, Feb. 2, then plunged a record 1,175 points more, or 4.6%, on Monday, Feb. 5.

As of Monday's close, the setback wasn't even officially a correction (down 10% from the market peak) and nowhere yet near a bear market (down 20%). Are there more losses to come? Or is this just a dip--one meant to be bought, perhaps?

Investors might look to the underlying U.S. economy, finally gaining steam after years of so-so performance, for clues. They'll find little evidence to sell. Consider:

U.S. GDP Growth Is Accelerating

Getty Images

You’re reading a preview, subscribe to read more.

More from Kiplinger

Kiplinger3 min read
I’ve Inherited a Lot of Money. Now What?
It’s no surprise that many people who inherit millions of dollars are uncertain about what to do with their newfound wealth. The possibilities of becoming a multimillionaire overnight can be overwhelming, especially during a period when most are grie
Kiplinger4 min read
Got Crypto? The IRS Really Wants to Know
The 2022 crypto price crash understandably has some investors concerned. But for those of you who haven’t run for the hills, it’s worth knowing that cryptocurrency currently has the attention of not only the Biden administration, and Congress, but th
Kiplinger2 min read
Tax-Savvy Charitable Giving With QCDs Can Benefit Both Giver and Receiver
Plenty of retirees like to give back to their communities through charitable donations, but questions often arise over the best way to do that. What approach is efficient, provides the tax benefits you’re after, and also is advantageous for the chari

Related Books & Audiobooks