Financial advisors: Don't panic on the fall of the Dow
Financial advisor Jeff McCormack of Bridgeworth Financial spent his day talking to clients, as they watched the Dow Industrial Average plummet by more than 500 points.
"Main concerns have been what's going on, what to expect, and what do they need to do, and what is their exposure." His advise to them is to stay the course. "Most of my clients are retired. So they're older. We've already had a lot of money off the market for a long time so there's not a whole lot to do right now. We've addressed this."
The advise is the same for younger investors.
"There's no question that age plays a factor in your ability to cope with the losses," says Brock School of Business Dean, Professor Howard Finch. "Younger people have more time to recoup and to hopefully ride the economy as it improves and the business cycle moves in our favor." He, too, says now is not the time to panic. "It rarely makes sense for people to knee jerk react. People need to remember why they invested, and most people invest in stocks for the long term"
If you have questions, you should call your financial advisor.