However, if you have a longer window for saving, holding off on the panic might be a good idea.
While things are hectic at the moment, and even if a major correction is in progress, in the long run, it's extremely likely that stocks will eventually recover and keep gaining value.
Consistent, steady, calm investing, without worrying about trying to figure out market tops and bottoms, is often a winning strategy.
Gluskin Sheff chief strategist David Rosenberg had similar comments in a note on Tuesday:
"Corrections are part and parcel of the investment process, they come and go, and it is imperative to take a deep breath and realize that what is most important for building wealth is not 'timing' the market but rather 'time in' the market. This does not mean that some cash should not be raised, and some risk be taken off the table, which is what we have done - nobody ever booked a loss by taking a profit - but one has to still be engaged because it is very likely that this is only a near-term pause/reversal in what is still an overall uptrend. The trick is not to live in the moment but rather look at the forest through the trees."
Rosenberg continues by giving examples of market fluctuations that, at the time, looked like disastrous collapses, but in hindsight were temporary fluctuations. He points out that the Dow dropped 7% early this year, but that investors who continued holding stocks still saw gains this year.
If you're investing for the long-run, it's important to keep a long-run view, and not overreact to every bump in the road.