Let’s Not Panic

A lot of people are looking at the Dow, NASDAQ and the S&P 500 and deciding they want off this roller coaster. They check out the individual stocks they’re invested in, see all the numbers are shaded red, and they’re yelling, “Sell!”

I understand the kick in the gut you may be feeling. After all, it’s your stack of money that seems to be dwindling by the day.

The old story is that when the market is going down, write a check before throwing a brick through your financial advisor’s window. I will be advising you to invest now. This is a great time for true investors who actually have a “buy low, sell high” mentality. They don’t look at a wobble or even a crash as a horrible thing. They look at it as a stock sale.

That’s because the market is incredibly resilient. In seven of the last 11 drops in the market since 1950, it only took one year for the S&P 500 to recover to its previous record high. Here’s a significant fact you should know: People who invested $1,000 in the S&P at the beginning of 2008 and again at the start of 2009, we’re back in positive territory by the end of 2009. Of course, since that time, we’ve been riding a bull market and those investments have paid off handsomely.

For the most part, what investors lose when the market craters is sleep. This is not a time to be reactive. It’s a time to proactively make bold moves with a quick recovery on the horizon.

If you’d like to talk about the stock market and your options, click the “schedule a consultation” button. Maybe I can help you get the sleep you need.

This commentary on this website reflects the personal opinions, viewpoints and analyses of the J Benjamin Financial employees providing such comments, and should not be regarded as a description of advisory services provided by J Benjamin Financial or performance returns of any J Benjamin Financial Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. J Benjamin Financial manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.