Utah investors 'in the doldrums,' financial planner advises sticking to your strategy
SALT LAKE CITY (KUTV) — Some investors in Utah are closely watching the stock market, which is on track for its worst December since 1931 despite Wednesday’s huge bounce.
“I’ve been really in the doldrums,” Bob Bradshaw, who’s retired in Draper said. “In fact, in some ways, it ruined my Christmas because to see it fall almost a thousand points in two days is really gut-wrenching.”
Certified financial planner Kevin Michels said his clients have not raised many concerns, as they’re focused on a long-term, buy-and-hold strategy.
“On average, if you look at history, every three to five years, this happens,” Michel said. “The market drops 20 percent.”
History shows the stock market has always bounced back before.
People who are retired should have 30 to 50 percent of their money invested in bonds, not stocks, to get them through tough times, according to Michels, who’s also president of Medicus Wealth Management.
If they don’t have that cushion, he advises people not to pull out their money now. Instead, sit tight and reduce expenses if necessary.
“For people still working, you know, 10-plus years until retirement, it’s pretty simple. Now’s a great time to invest and a great time to buy,” Michels said, adding stocks are now at a 20-percent discount.
The financial planner also advises once the markets recover, look at your asset allocation to make sure you’re not overly exposed to stocks. It may be time to rebalance.
Bradshaw said his son-in-law told him “this is just a correction, wait four months, and it’ll bounce back, and I just hope he’s right.”
