Local Financial Advisors Say “Stay the Course” Following Historic Market Drop
CHARLOTTE, NC- Stocks taking their biggest point drop in history on Monday, during a tumultuous day on Wall Street.
The Trump administration is now talking about taking action to provide relief amid the market uncertainty brought on in part because of the Coronavirus uncertainty. Trump saying in a news conference that he’ll be pushing lawmakers to possibly implement a payroll tax cut to ensure hourly wage earners get paid.
“What history shows you time and time again is that the pullbacks are temporary and the advance is permanent. but it’s very hard to think beyond today.”
Chris Mullis is a Charlotte financial planner at NorthStar Capital Advisors. He says the Coronavirus outbreak is fueling a frantic and uncertain market. Mullis says investors should stay the course and seek strategic opportunities.
“What happens every day, every week, even in the year is not meaningful for someone who is saving and investing for decades,” said Mullis.
On Monday, the S&P 500 fell by at least 7% at two different times, triggering a pause in trading twice.
“The circuit breakers are designed to do is to prevent a massive drop and allow everyone to catch their breath. Take a minute and breathe,” explained Michael Baker, a Founder of Vertex Capital Advisors in Fort Mill.
He says markets are rocky for several reasons. Oil prices made their biggest drop since 1991 amid a price war between Russia and Saudia Arabia. And the 10-year Treasury Bond hit a record low as investors flooded a perceived safe haven.
“Stay true to your plan. Think about the long term,” said Baker.
As markets try and correct, local advisors encourage people to look beyond the record tumble.
“Just a flash. For all intents and purposes just noise,” said Mullis.