How the dip in the Dow could affect you

How the dip in the Dow could affect you
By: Wes Wallace
Wall Street took a big hit Tuesday, when the Dow dropped more than 500 points during day trading.  The market recovered slightly later but still closed down 416 points.
"The key is not to panic, because one day's activity shouldn't be the base for something you might regret later,'  says financial expert Paul La Monica, "Meaning don't sell your stocks just because the Dow dropped."
Certified Financial Planner Derieck Hodges has some reminders about Tuesday's plunge.
Hodges advices to not sell.  He says many people might start buying because it's like there's a 3.5% sale on stocks now.   Hodges also recommends to not worry, because fear perpetuates the marketplace, and the average investor has no control over what happens.

Some other tips: ask yourself if the companies in which you own stock make sense and make money in the long run and ask yourself if you only lost a couple of points, does it really change the big picture? Hodges suggests if you're retired or don't have much cash, you might need to reconsider your portfolio.  He adds at that point you don't want to have to sell stocks.

Another point of interest, the Dow hit the lowest since opening back up after the September 11th attacks.