Louisianans with much of their retirement and wealth invested in stocks are growing worried about the emerging bear market. The Dow Jones and the S&P500 have both dropped around 20-percent overall, triggered by fears a recession is looming. Baton Rouge area investments advisor Matt Kennedy says it’s wise not to panic, but be ready to ride out some rough fiscal times.
“We see the stock market continuing to possibly sell off another 12 to 15-percent before this thing levels out some,” says Kennedy.
Kennedy is with Presley Wealth Management in Baton Rouge. He says he understands investor fear, especially when watching your investment statements dwindle. However he says try to be calm and patient…
“..because remember, if you’re working at adding money to your 401-K, yes – you’re watching the value go down – but hopefully you’re getting your company match and you’re buying while the market is ‘on sale’…and it WILL come back down the road.”
Kennedy says it’s not unusual in bear markets for investors to move money from stocks to bonds, but Kennedy says that may not be your best move this time.
“The bond market has lost nearly as much as the stock market, so while mutual funds can be good…this year they are NOT a panacea. You have to find alternative investments,” Kennedy says. He suggests income paying annuities or even hard assets, like real estate, to be able to weather the fiscal storm.
Kennedy says if you are within five years of retiring, you must be more careful with investments; looking at reduced risk of loss of principal. He says this bear market will probably not last more than a few months.
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