NEW YORK — For individual investors, the quick-turn global rout in stocks on Monday was unsettling, despite news Tuesday that stocks staged a rally.
Also unwelcome: Expectations that volatility will continue for the foreseeable future. Investment strategists at retirement investment advisory firm TIAA expect it to last at least through the presidential election, said Doug Ornstein, a director on TIAA’s wealth management team. That’s thanks to uncertainty around the presidential election outcome, concern about interest rates and economic factors like jobless claims, as well as geopolitical risks.
But if you’re investing in a 401(k), daily market dramas are no reason to take dramatic actions with your portfolio. Not only are down days and periods of volatility normal, they can create good buying opportunities for the managers of the funds in which you’re invested. “It’s important to remember pockets of opportunity are always on the other side of the storm,” Quincy Krosby, chief global …