Chinese officials are expected to be in Washington this week to hold consultations with the U.S. ahead of high-level trade talks in October.World Economyread more
President Donald Trump said Monday he's in no rush to respond to a coordinated attack that hit Saudi Arabia's oil industry over the weekend.Marketsread more
The price of oil could go sharply higher, depending on the duration of the disruption at Saudi oil facilities and whether there is a military response.Powering the Futureread more
Energy stocks, one of the worst-performing sectors this year, spiked Monday after an attack on Saudi Arabia's heart of oil production Saturday sent oil prices soaring.Marketsread more
The Saudi-led military coalition battling Yemen's Houthi movement said on Monday that the attack on Saudi oil plants was carried out by Iranian weapons and did not originate...Oilread more
After a series of setbacks on the road to an initial public offering, the parent company of real estate start-up WeWork is delaying the move, sources told CNBC Monday.Technologyread more
"The United States military, with our interagency team, is working with our partners to address this unprecedented attack and defend the international rules-based order that...Politicsread more
Crude oil's spike following attacks on Saudi Arabia's energy supply has experts weighing whether or not the gains will last.ETF Edgeread more
"In the old days, the averages would've plunged on this kind of oil shock. I know because I've lived through a bunch of them, starting in 1973," Jim Cramer says.Mad Money with Jim Cramerread more
Traders in the fed funds futures market on Monday were pricing in a 34% chance that the Fed will stay put on rates.The Fedread more
The meeting comes amid months of stalled trade talks between Washington and New Delhi, resulting in both sides taking retaliatory measures.Asia Politicsread more
Though stocks have had a bumpy ride this week, most financial professionals will advise you to leave your long-term investments alone.
Yet there are certain circumstances in which you might want to act.
Consider what happened this week: The Dow Jones industrial average fell 724.42 points, or 2.9 percent, to end at 23,957.89 on Thursday, its biggest decline since Feb. 8. The S&P 500 dropped to 2,643.69 following a 2.5 percent decline.
The sharp drops came as President Donald Trump unveiled plans to impose new tariffs on up to $60 billion in Chinese imports.
What's more, the Federal Reserve's decision to raise rates this week may have also contributed to the market fluctuations, according to Jamie Cox, managing partner at Harris Financial Group in Richmond, Virginia.
The Fed approved a quarter-point rate hike on Wednesday, bringing the benchmark funds rate, which is tied to consumer interest rates, to 1.5 percent to 1.75 percent.
Many retirees will be better off with the move as interest rates on their investments rise (as long as inflation stays low.)
"The same retirees who want rates to go up have to be prepared for a little market pain to go with it," Cox said. "This is going to benefit income-oriented investors. What we're going through now is part of the process to get there."
When it comes to your long-term investments, financial advisors generally will tell you not to let those market jitters steer you off course.
"We are biologically wired to react, to steer ourselves away from the danger," said Michael Conway, CEO of Conway Wealth Group in Parsippany, New Jersey. "That's one of the surest ways to destroy wealth for long-term planning."
If you already have a long-term diversified portfolio with the right allocations, you are better off doing nothing, Conway said.
If you went to cash during the financial crisis in 2008, you would have missed an approximate 17,000 point gain in the Dow Jones industrial average over the past 10 years.
"Had someone reacted to their biological instincts and gone to cash, they would have missed out on what has gone on in the last decade," Conway said.
Having a portion of your portfolio dedicated to cash will help you weather market downturns, according to Cox.
That is because having that money available will enable you to use it for income or spending when it would not be wise to sell stocks amid volatility, he said.
If you do sell stocks when the market is down, you will have to sell more shares to get the amount you desire. That could in turn reduce your dividend yields, Cox said.
Ideally, you want to hold 5 percent to 10 percent of your portfolio in cash, Cox said.
"If you can prevent selling your equities during a correction, having that extra cash enables you to do so," Cox said. "The correction doesn't hurt you unless you have to take action."
Don't forget to consider your age when evaluating your portfolio amid market declines.
If you're at or close to retirement and have not properly factored your time horizon in with your investment strategy, that is when you might want to consider pulling back, Conway said.
Check with a financial advisor to make sure your portfolio is in line with your objectives and risk profile.
"Stay diversified and maintain a long-term investor mind-set," Conway said.
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