What short-term market volatility means for your 401(k) [Video]

On the heels of a poor jobs report, widespread fears of a U.S. recession sent global markets tumbling Monday, with the Dow Jones Industrial Average falling by more than 1,000 points on the day.

Gregory Daco is a chief economist at the management consulting firm EY-Parthenon. He says while short-term market volatility can raise concerns about Americans’ 401(k) retirement accounts, it’s not always a sign of long-term financial issues.

“I think you have to have a broader perspective,” Daco told Scripps News. “Not everyone is retiring within three months, six months, or even a year. Most of us are going to still be working in a few years time. So you have to take a bit of a step back from the day-to-day volatility. … If you look at the broad stock market gains over the course of the past year, they’re still quite strong.”

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Much of the volatility is believed to be tied …