Financial advisors: ‘focus on the long term’ success of stock market

IRON MOUNTAIN, Mich. (WLUC) – Two major U.S. stock indexes rose Wednesday after getting some relief from an encouraging inflation update.

But it’s been a rare up day for the market lately.

Range Bank Chief Trust and Wealth Management Officer Amanda Knaffla says geopolitical tensions and the possibility of tariffs could be causing uncertainty in the stock market.

“Stock markets in particular tend to like certainty,” Knaffla said. “Anytime you go through a period like this, when there’s uncertainty, the stock market will typically react to that. I think that’s a lot of what we are seeing is the stock market trying to absorb some of the uncertainty we see out there.”

First National Bank and Trust Wealth Management Director Michael Morgan says a short-term drop shouldn’t cause you to panic.

“Large cap stocks in the United States, measured by the S&P 500, have averaged over 10% per year since around 1929,” Morgan said. “You want to look at your investments from a long-term perspective, not get caught up in trying to trade the daily news. You’ll never keep up with it.”

Morgan says sometimes, the best economic indicators can be seen locally.

“Look around where you live,” Morgan said. “Are the stores busy? Are people active? Is there construction going on? Those are signs of a healthy economy. The economy drives corporate earnings, corporate earnings drive the stock market.”

Knaffla says if you do have concerns about your 401(k) or investments, talk to a financial advisor.

“If you are uncertain about it, if you’re not sure about what’s going on out there, reach out to a financial advisor,” Knaffla said. “If you have an advisor, this is a great time to reach out to them and touch base.”