If you’ve been keeping a close eye on your retirement investment accounts lately, you may have been a bit concerned at all the red.
So we looked into what to keep in mind to survive the turbulence.
7News spoke with a number of financial advisors in the Upstate who work for different firms but share a common belief; despite the recent roller coaster ride, we are still in a bull market that isn’t like to stop for some time.
Still investigators who once salivated at the sound at the opening bell on Wall Street, have a new response, anxiety.
Shawn Waggoner, says within the last few months he pulled everything out of his 401K.
“It’s been quite the ride, and looking at the political landscape at the moment I just knew it was going to be kind of tumultuous for a while and I just decided to go ahead and get out early,” he said.
That response is understandable, especially on a day when the Dow opened more than 500 points down.
But financial planners like Beau Shuler say research shows we are still very much in the middle of a long-term bull market.
“Earnings are very strong, revenues are way up, companies are making a lot of money. And we continue to believe that it’s time to buy,” he said.
We checked in with other firms who agree. They say if this run is anything like the bull market from 1982 to 2000, we have a long way to go before it peaks.
Which is why experts favor the approach of putting money into age appropriate retirement funds, and not touching them.
The VIX index which gauges fear in the market, got above 24 Wednesday which is on the high end of the normal range. But Last month it got above 50. So Wednesday reaction is not the most extreme that we’ve seen in recent weeks.
If you look at that same index from last year, you’ll see the volatility never got above 20. So in comparison, this year has been unsettling.
Waggoner remains skeptical. He plans to invest his cash in a start-up business (which is why he didn’t suffer penalties for cashing out his retirement account). He says he trusts more in his hard work than the uncertainty of the market.
“I have control of that, so that’s where my money’s going,” he said.