GREEN BAY, Wis. (WFRV) It has been a rough week for investors as concern over the coronavirus has caused the stock markets to fall. Kris Schuller spoke with a financial planner Friday about what you should do during all this bad news.
U.S. stock markets are heading towards their worst week since 2008, as investors pull their money out of Wall Street.
“In the last week the market has fallen about 12 to 15 percent,” said Certified Financial Planner Patrick Stoa with Macco Financial Group.
Selling because of the potentially deadly Chinese coronavirus. But this financial planner says as an investor, do yourself a favor and ignore the headlines, focus instead on the long-term. It is the guidance he’s giving his clients right now.
“The actual impact so far has been relatively mild. The fear is what is the long-term impact on the economy and that’s still unknown,” he said.
Stoa says if you’re near retirement, take a second look at your holdings and make sure you’re not being too aggressive and adjust accordingly. And if you’re decades away from retiring, look at the market drop as a huge buying opportunity.
“A young person should really be thinking of this as a discount, the markets are on sale for them,” Stoa said.
Stoa says while the stock market has declined quickly this week, on average it falls by 14 percent once a year. And he believes the coronavirus will be controlled and stock valuations will rebound.
“We’ve gone through tough times before and we’ve gotten through. The world is a better place than 20, 30, 40 years ago and I think that pattern of human progress and ingenuity will continue,” he said.
Friday the Dow closed down 357 points.