Stock market falling? Here's what to do with your 401(k)

When the stock market falls, your first instinct might be to panic. Here's what financial experts say to do instead.

When the stock market falls off a cliff, the natural impulse might be to panic and sell. There’s nothing so stomach-churning as watching your 401(k) sink into the red, with no bottom in sight. 

And that’s how many investors probably felt on the morning of March 3, as stock indexes plummeted in response to escalating conflict in Iran. 

But panic-selling violates two or three cardinal rules of investing: Buy stocks when prices are low, sell when they’re high. Don’t make impulsive moves. Stick to the plan.  

Here are a few rules to remember when markets are reeling: 

It might sound tempting to cash out of the stock market when the indexes are falling, sit out the downturn, and reinvest when markets hit bottom.