As recent fluctuations on Wall Street stir financial concerns, experts are advising investors to remain calm and focused on long-term strategies.
Zach Ivey, Chief Financial Officer at Savant Wealth Management, emphasized the importance of patience in the face of market volatility.
“Panic and emotion is never a good strategy in investing,” Ivey said. He referenced Warren Buffett’s famous assertion that the stock market efficiently transfers money from the impatient to the patient.
For those worried about their investments, Ivey advised understanding one’s financial goals and timeframes. “If you have a long timeframe, today’s not the day to be selling,” he said. However, retirees or those nearing retirement should assess their portfolios to ensure they have sufficient saved assets.
Ivey also recommended focusing on controllable factors, such as diversifying investments. “We can control the risk that we take and that’s really the broad decision of how much we have in stocks and how much we have in bonds,” he said.
For investors hesitant to check their portfolios amid market turmoil, Ivey suggested that if a portfolio was sound a few months ago, it likely remains so. “It’s ok to not log in, not look at it, especially if you know it’s going to hurt your feelings,” he said. However, he advised reviewing portfolios if there is a sense of increased risk.
Ivey compared the current market situation to the COVID-19 collapse in 2020, noting that historically, markets tend to recover. Experts continue to urge investors to stay the course.
