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Stock market swings: What should the average investor do?

Trader Tommy Kalikas works on the floor of the New York Stock Exchange, Monday, Feb. 5, 2018. Stock markets around the world took another pummeling Monday as investors continued to fret over rising U.S. bond yields. (AP Photo/Richard Drew)

As the stock market tumbled, financial advisers cautioned against panic.

"I think the wrong thing to do is to panic," Garro Ellis, Moneywise financial adviser said.

Ellis said both fear and greed drive the market, and when it goes up and down people need to put emotion aside.

"Once you let your emotions enter into your investment world, more than likely it is going to be a bad decision," he said.

Ellis said anytime the market pulls back investors should take advantage of it. He said that is the time to get a sale on stock.

"You're buying stock on sale when it's down," he said. "Don't fear this market, embrace it," he said.

Ellis said a smart investor will stay patient as the stock market swings.

"Consistency is the key to long-term success in investing," he said.

According to Ellis, people should stick to a plan for their financial goals. He said people should not make any sudden moves with their 401(k).

"Stick to the road map, stick to your strategy. If you don't know what it is, find one. Know what your budget is, meet with a financial adviser," Ellis said. "You're only going to fail if you fail your strategy."

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