Did you panic sell during the latest stock market dip? Here’s when to get back in

Did you panic sell during the latest stock market dip? Here's when to get back in  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, SEP 29, 2021 YOUR WEALTH Editor's Note The wild roller-coaster ride that stock markets have investors on has caused many to react more out out of fear rather than logic. As the market volatility continues, so will panic selling, experts predict. Panic selling is a widescale selling of an investment, which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is a problem because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals. Meanwhile, that drop scares other investors into selling, which causes prices to fall still further, which frightens more investors, and so on. The resulting panic can erase vast amounts of wealth. Panic selling often happens during stock market dips, and those who dump investments may later regret their decision, experts warn. A major reason you shouldn't panic sell is that those who leave the stock market and don't re-enter miss out on the recovery. In fact, the best returns often follow some of the biggest dips. A major issue many investors face is actually getting back into the market after a "freak out," according to research from the Massachusetts Institute of Technology. To that point, more than 30% of investors who panic sold assets after previous downturns never got back into the stock market, as of Dec. 31, 2015, according to the MIT report. In many cases, financial experts say, looking at a company's true value, profits and track record will prove that there was no need to panic sell at all. Ironically, panic selling actually creates great buying opportunities for well-informed traders and investors. Those who know when the selling is over can benefit from the retracements/turnaround that often occur afterwards. For more cool stuff like this, check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. Jim Pavia Money Editor @JIMPAVIA Did you panic sell during the latest stock market dip? Here's when to get back in Panic selling is common during stock market downturns, but many investors never re-enter the market. Here's what to know about re-investing after going to cash. Panic sellers during stock market dips are often married men with children When markets dip, men who are over 45, or married with kids or have what they call investment experience are more likely to panic sell investments. 42% of Americans have racked up more credit card debt since Covid-19 began. These tips can help get that under control Covid-19 has caused financial challenges for many individuals and families. Now one survey shows many are feeling the pinch with their credit card balances. Here's what the debt limit standoff means for you Failing to suspend or increase the debt ceiling could delay Social Security checks and veteran benefits, increase borrowing costs and trigger a market sell-off. How to get more financial aid for college To get any assistance, students must file a Free Application for Federal Student Aid, which serves as the gateway to scholarships, grants, work-study and loans. How the pandemic has changed the financial advice business Financial advisors say the pandemic has changed the way they do business but not the advice they give their clients. Have a large amount of cash to invest? Here's how deploying it all at once compares with doing so over time Recent research examined rolling 10-year returns on $1 million and compared results between an immediate lump-sum investment and dollar-cost averaging. Make these financial and career moves before you quit your job Before you decide to join the millions of Americans taking part in "The Great Resignation," make sure you are financial stable and have a plan. Energy's the top sector this year, and Fundstrat's Tom Lee says there's still 'plenty of upside' left Energy stocks are up double digits for September as oil prices rally, and Fundstrat believes it's the best positioned sector for the fourth quarter. The next recession will be caused by the stock market "The next recession will be caused by the stock market. Nothing else is big enough ..." CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS