WEST MICHIGAN — A sharp decline in Japan's financial trading index Monday morning sent shockwaves through global markets, with the U.S. preparing for the worst. The S&P 500 and Dow Jones plummeted 2.4% and 2.2% respectively by midday, sparking concerns among investors.
According to Phillip M. Mitchell, president of Kroon & Mitchell Investments, the U.S. Bureau of Labor Statistics' release on Friday morning contributed to the market volatility. The report showed unemployment rise to 4.3% in July.
"The jobs report is usually a lagging indicator, telling you after something occurred, not in anticipation," Mitchell explained to FOX 17.
Mitchell advises investors to take a step back and assess their portfolios.
"You look where your money is, and you also want to look down historically: How does this type of asset or investment draw down versus the market? That's the most important thing."
He emphasizes the importance of balance and diversification in investments, particularly during unstable market conditions.
“It's unclear if someone really needs to make change,” Mitchell explained Monday. “Some may need to make changes, some may not.”
Mitchell cautions against making emotional, impulsive decisions based on market fluctuations like this.
"It naturally gets under the skin or the emotions of people, and then they start to think of the worst, and so it amplifies the ups and downs of market cycles."
Instead, he recommends having an expert review your holdings and consider how things may change in the future.
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