Aug 04, 2022

Financial planner advises don't panic stick to your plan even in a down market

Posted Aug 04, 2022 6:00 PM


St. Joseph Post 

As stock prices continue to dip lower and lower the first instinct may be to panic, but financial advisors say the best course of action is to stay the course 

Senior Wealth Planner at Nold-Bryant in St. Joseph Austin Nold says that sell offs in the market are typically always scary.  

"And there's really no telling how long it might last," Nold tells KFEQ/St. Joseph Post. "But, one thing that happens is markets tend to price sell offs in advance so even when we get to an actual damage or an actual recession, sometimes that's the point where the market turns around or maybe even before the recession actually hits." 

Nold says what makes this stock downturn scarier is that bonds are also down. 

Nold says the biggest reason for the current downturn in the market is concern around inflation and the Fed raising rates.  

"So, the question is how far is the Fed going to have to raise rates and how much damage will that cause in the economy," Nold explains. "Will the Fed cause a recession basically." 

The stock market continues to decline causing panic amongst investors.  The best advice financial advisors can give?  

Just stay the course.  

Nold says in meetings with clients he advises that generally in this kind of market, the best course of action is to stick with your strategy and ride it out. 

"Selling while the market’s low is a good way to damage your financial plan," Nold says. "So just sticking with it and staying the course." 

Also, Nold says - even though it might not seem the best time to invest - there is no better time than now to begin investing while prices are low and you can begin making contributions.