The stock market’s recent movement might have some investors sweating, but financial advisors are urging people to stick to their plans.
On Monday, the Dow Jones experienced it’s largest point drop ever — closing around 1,175 points less — and a 4.6 per cent decrease which was the largest since 2011.
Allan Small, an investment adviser with Allan Small Financial Group with Holliswealth, told the 980 CJME Morning Show people shouldn’t panic as much as they might think.
“With the market as volatile as its been, I think the best thing you can do is take a step back and just watch it play out until things calm down a little bit,” Small said.
Small said many people would still be affected, with portfolios being a bit lower than what they would’ve seen in January.
John Hettel, an investment adviser with TCU Wealth Management, said these sort of market fluctuations are a normal part of investing in the stock market.
“If you’ve established goals that fit your own risks and objectives for your investments with your investment professional, then it is always prudent just to stay the course, even through the market volatility,” Hettel said.
Hettel added it’s important people have a diverse portfolio to help ensure they don’t get too affected by a market swing.
Small indicated while people should be taking a step back, they should be aware of some new opportunities as well.
“Many investments today that are a lot cheaper what they were even a week-and-a-half ago.”