The drop will reduce the financial portfolios and retirement accounts of many, who may respond by spending less recreational dollars. Those who depend on such money won't be able to pay bills or save for the future.
These ups and downs are cyclic, however, but can certainty make nervous investors penny-pinch.
Never put all of your eggs into one basket. (Makes it too easy for a nefarious hawk to swoop in and grab it!) Diversify your assets.
Originally Posted by Fancyinheels
Pshycologically yes, saw many of them stressed out today..many...but I had casually suggested to few folks in early jan when dow reached 25k to shed indexed investments made in 2009 based on the amount invested to their comfort to take some profits not all. The rest kept in the portfolio should offset some pullbacks at this time...so recreational money could have been made with some foresight...IMO...