Dive Brief:
- In response to Monday’s stock market dropoff, Starbucks CEO Howard Schultz told the company's baristas that its regular customers might be seriously stressed, and that they should be “very sensitive” to their customers’ emotional state.
- Speaking of stress: 401(k) stocks may have been harshly affected in the downturn. But experts say not to panic just yet.
- The Dow dropped more than 580 points after a “tumultuous” day of trading in which more than 13.9 billion shares changed hands, according to the Wall Street Journal – meaning anxiety abound for employees everywhere.
Dive Insight:
If your employees were in a bad mood yesterday, the stock market may be to blame. If they’re concerned about their 401(k), experts have some tips you may want to pass along.
First, relax. Don’t sell off immediately. Investors who sold off in 2009 would have missed out on one of the great bull markets in history, reports ABC News. Be aware of your portfolio’s risk level. The behavior of the stock market is actually a boon for younger investors, says ABC, though older investors may be feeling more anxious.
For HR execs, it’s most important to keep any concerned employees calm. The Wall Street Journal reports that most investors remain optimistic about U.S. stocks. Many expect that this drop will right itself, so unless the stock market continues in a way so far unpredicted by experts, your employees’ 401(k)s should be safe.
Maybe also send them on a Starbucks run. Seems like the baristas will understand.
UPDATE: The stock markets are in fact rebounding despite continued downturns in China. No one is sure if the rebound will last, according to the New York Times, but many are saying yesterdays drops were an "overreaction to China's specific economic and financial market problems."