(KTXL) — For those who have a 401(k) or invest in stocks another way, today’s drop may have them concerned about their money and what’s coming next.

The tumble into a “bear market” or a drop of more than 20% from a recent high was caused by fears of rising inflation shortages. 

Experts say that usually when investors, large or small, pull their money out of the stock market that can mean that people need more money and that a recession may be on the horizon.

“You know, certainly by late fall, early winter, you’ll start to see us move into a recession,” President and CEO of the Greater Sacramento Economic Council Barry Broome said. “I don’t think it’s going to anywhere near what we’ve seen in 2008. But it’s gonna hurt a little bit. And it’s going to take six months to ay ear to work through the supply chain issues, the fuel issues and the food issues.”

Supply shortages and rising prices for all kinds of products are just two main components of why experts believe the stock market is trending down.

“You know, when you close the economy for two years, we knew when it came back on even if it recovered, there’d be sustainability issues,” Broome said. “And I think, the food pricing, the gas pricing, the war in Ukraine, some of the trade barriers that were built in the last couple of years. And now interest rates are being raised with the Fed. I think you’re gonna see a slowdown and I think you’re gonna see a recession.” 

Officials say, if you’re invested there are smart moves you can take to keep that money in your portfolio, life diversifying for the short or long term.

“Again you should be investing based on your risk tolerance and your time horizon,” Jeffery Bangerter of Bangerter Financial Services said.

There are ways to play it safe too outside of the market.

“And then you know, being frugal, you know, now’s probably not the time to make a big home purchase or big durable goods,” Broome said. “So lay back on your spending, you know, hoard cash.”

Although today’s numbers put the U.S. stock market in bear territory, experts say it could just be a market correction from some very high highs overall. They don’t think it is anything like the 2008 crash caused by millions of bad mortgages and a collapse of the housing market.

“I think you know, it’s a good time to save your money and employments gonna hold up but it’s going to be a rocky road for about six to 12 months,” Broome said.

For now, bear down for hibernation. Experts say divrsify that portfolio and maybe hold off on buying that new car if you can.

The federal reserve board is expected to meet tomorrow to talk about hiking interest rates the could cause bonds to lose value as well.