WSJ Your Money Briefing

How an Unsteady Market Is Leading Everyday Investors to Buy and Hold

24 snips
May 29, 2025
Hannah Erin Lang, a Wall Street Journal reporter specializing in personal finance, explores how April's stock market fluctuations are reshaping everyday investors' strategies. She discusses the shift toward a long-term investment mindset and the importance of staying invested. Hannah reveals effective strategies for coping with market volatility, such as buying the dip and reassessing one's risk tolerance. The conversation highlights the growing confidence of younger investors and the value of long-term planning in navigating today's unpredictable market.
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INSIGHT

Spring 2025 Market Volatility Insight

  • The stock market experienced extreme volatility in April 2025 due to Donald Trump's tariff plans.
  • This sharp contrast to steady gains in 2023-2024 makes it a time for investors to reassess risk tolerance.
INSIGHT

Importance of Holding Through Downturns

  • Holding onto investments during downturns generally leads to recovery and long-term gains.
  • Missing just a few of the stock market's best days can reduce returns by over 30 percentage points.
ADVICE

Risks and Rewards of Buying the Dip

  • Buying the dip involves risk as stocks may fall further after purchase.
  • Younger investors often buy the dip confidently, expecting long-term recovery.
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