Don’t shake up your retirement fund

Associated Press

NEW YORK

Voters chose to shake up Washington and bring big change to the White House. Resist doing the same with your 401(k), analysts and fund managers say.

The first reaction for many investors around the world was to sell – nearly everything – late Tuesday as it became clear that Donald Trump would win the presidency. Stock markets tanked from Asia to Europe, and a similarly steep drop seemed likely when U.S. markets opened.

But stocks proved resilient Wednesday morning, benefiting those who sat on their hands instead of selling immediately. The market likely won’t stay this calm in the next few days and weeks. Analysts are forecasting big swings as investors digest the surprising election result, but their advice for investors remains: Stay the course. Here’s a look at what experts say to expect:

WHAT’S GOING TO HAPPEN TO THE MARKET?

The answer is that no one knows. Not even the market knows. Late Tuesday, the futures market – where investors place bets on where stock indexes will end up – was calling for a drop of at least 5 percent for the widely followed Standard & Poor’s 500 index. By Wednesday afternoon, the S&P 500 was up more than 1 percent.

WHAT SHOULD I DO WITH MY 401(K)?

Try to do nothing, even if the market starts to swing sharply, experts say.

Stocks are long-term investments, meant to be held for many years. Big swings in the interim are normal and should be expected.