What The Market Turbulence Means For US Investors

This week, turbulence in financial markets around the world have led some to compare current conditions to the climate around the time of the 2008 financial crisis. Worries about a repeat of the recession have caused investors to pull out of the market, leading the S&P 500 more than 2 percent lower on Thursday. However, many analysts are calling the market's panic overdone, saying that traders should remain calm and remember that for a long-term investment strategy, the current conditions could be a buying opportunity. Sit Tight While it can be harrowing to see your portfolio slide in times of turmoil, many analysts say that the majority of investors should sit tight and ride out the storm. For a diversified portfolio, a bit of turbulence is to be expected as market conditions are typically unpredictable. As long as the investments were made with a long-term objective in mind, panic is unfounded. Traders who are worried about the market's ups and downs likely have a great deal of short-term money invested and may want to reconsider their investment strategy. This is especially true for millennials, who have years to recover losses from volatility. On the other hand, those approaching retirement are likely to be a bit more conservative and may not want to keep a large percentage of their portfolio in stocks. Get Greedy Depending on an investor's appetite for risk and the number of years they are planning to invest, now could be a great time to buy. Famed investor Warren Buffett advised investors to, "Be fearful when others are greedy and greedy when others are fearful," and the current market conditions represent the perfect opportunity to put this advice into practice. Big name stocks have lost a considerable amount over the past week, something many investors are using as an opportunity to scoop them up at a discount. Amazon.com Inc. AMZN has fallen 8.28 percent, Facebook Inc. FB declined 6.76 percent and General Electric GE has lost 5.97 percent. For those who are looking at least two or three years down the road, buying into big names like these could be a great money making opportunity.