Economy & Labor

How You Should Respond To The Stock Market Plunge

Published August 24, 2015 at 12:06 PM CDT

Traders work on the floor of the New York Stock Exchange (NYSE) on August 24, 2015 in New York City. As the global economy continues to react from events in China, markets dropped significantly around the world on Monday. The Dow Jones industrial average briefly dropped over 1000 points in morning trading. (Spencer Platt/Getty Images)

Stock markets in the U.S. took a plunge at the open Monday, with the Dow Jones Industrial Average falling more than 1,000 points in early trading.

This comes after China’s main stock index dropped more than 8 percent today, in what some are dubbing China’s “Black Monday.”

Here & Now’s Jeremy Hobson looked at what’s happening, and what individual investors should do, with Jill Schlesinger of CBS News.

“It’s such old advice, but it really works. Calm down, don’t do anything, sit still,” Schlesinger advised. “What does this one day signify? Probably not much. For most people, they’ve got diversified portfolios. They don’t have all of their money in stocks. For most people you don’t need your money for a while and hopefully you’re kind of rooting for the market to go down if you’re continuing to contribute to your retirement account or education funds because you’re buying shares at lower prices. So it’s really boring advice to say, ‘Keep cool, stick to your game plan,’ but it actually works.”

Guest

Jill Schlesinger, business analyst at CBS News. She tweets @jillonmoney.