Wall Street took a big hit Monday due to fears about the coronavirus. According to the Associated Press, the Dow Jones Industrial Average closed at the end of the trading day down over 2,000 points. Trading was halted for 15 minutes early Monday until 9:49 a.m. ET on the New York Stock Exchange.
We took your questions about the stock market to financial expert Clark Hodges with Hodges Capital. Here are a few of them, answered.
Question:
What about my 401(k)? Should I get out?
Answer:
If you're under 60 years old, don’t touch it. If you’re between 60 and 70, every few years, you should be removing risks from the stock market. Most 401(k)s have a plan to move from stocks to safer bonds and fixed income as you age. If you're in your 70s and you haven't done that, you're a bit handcuffed.
Question:
Is now a good time to invest since everything is low?
Answer:
I believe it is.
Question:
I have $40,000 in my savings. What should I get into after Monday's market for a safe investment?
Answer:
Blue chip companies that pay a dividend.
Question:
Is there any certain place, person or company you can recommend to go to that would steer me right as a beginning investor with only $2,000-$3,000 to invest?
Answer:
Online companies like TD Ameritrade, Charles Schwab and Fidelity are good places to start. I would look into buying a mutual fund that has a good track record.
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