What investors should do when there is more volatility in the market WFTV [Video]

NEW YORK — (AP) — U.S. stocks are bouncing back after the market experienced its worst day in two years on Monday, but the average investor may still be understandably spooked. Over a three day losing streak, the S&P 500 dipped more than 6% before rallying again Tuesday, up 1.6% in midday trading.

“This is what an emotion-driven market looks like,” said Mark Hackett, head of investment research for Nationwide. “You had a three day period that was really very challenging. But the drop was not justified by the data that was out there, which is why you then have a day like today.”

For everyday people, what are the best ways to handle market volatility? The top advice is to do nothing, but ultimately your response depends in part on your circumstances and financial goals.

What to do in general

“It’s important to remember that investing in the stock market is a long game. There’s going to be volatility, so be wary …