Grant Sabatier of the blog Millennial Money, said this sell-off could be a chance for more young people to get into the market, some of whom maybe couldn’t afford to before.
“A lot of younger investors say, ‘Are stocks too expensive? Should I buy?'” Sabatier said. “Any type of correction is a positive thing. We’re investing for the long term, so I rather get in on the value now.”
Current market volatility actually poses the least threat to millennials, who aren’t likely to need their retirement-account savings money for decades, he said.
This dip should serve as a reminder to millennials that you shouldn’t invest money in the stock market that you’ll need in the near future. If you play the “long game,” as Sabatier recommends, you’ll come out on top.
“Look at the performance of the stock market over the last 100 years,” he said. “The Dow has returned on average 7.2 percent a year compounded.”