The U.S. stock market sell-off continued on Monday: The Dow Jones industrial average shed over a thousand points and the Dow, which broke below 25,000, erased its 2018 gains. That leaves many investors worried and wondering what to do.
During times of stress and uncertainty, Oracle of Omaha Warren Buffett recommends keeping a level head. In response to wild market fluctuations back in 2016, he told CNBC that buy-and-hold is still the best strategy.
"Don't watch the market closely," he advised those worried about their retirement savings at the time. "If they're trying to buy and sell stocks, and worry when they go down a little bit … and think they should maybe sell them when they go up, they're not going to have very good results."
Most analysts consider this drop to be a normal correction, as opposed to a sign of an incipient bear market. Though the drop is unsettling after 2017, the first year in history where the S&P 500 showed gains every month, Nick Holeman, a CFP at Betterment, agrees that you shouldn't panic.