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Financial advisers urge long-term vision as stocks fall

Posted at 5:54 PM, Mar 12, 2020

Trading was temporarily halted Thursday for the second time this week, as global markets continue to plummet.

The DOW lost 2,300 points, or 10% of its value at closing time, marking the biggest one-day drop since 1987. The S&P and NASDAQ also recorded major losses.

Leaders in Washington are scrambling to come up with a plan to offset the losses, and the huge impact to businesses nationwide.

The Federal Reserve announced a move to pump $1.5 trillion into the country's financial system to combat the coronavirus's impact on businesses.

On Capitol Hill, the Senate will remain in session next week, postponing a planned recess to work with the House on an economic stimulus package. However, disagreements remain between versions in the two chambers.

Items being discussed include a payroll tax cut, child care relief, help for hourly wage earners so they don't miss a paycheck, and economic relief for travel industries like airlines and cruise companies.

As markets continue to fall, News5 spoke to financial adviser Carl Carlson.

He said one thing to keep in mind as we enter a bear market is that the economy was strong before the virus took its toll on nervous investors, and that should help cushion the blow.

He also said to keep a long-range perspective, and if you have the money available it's a good time to buy some stocks at lower prices.

"Take a deep breath and relax. I know it's a little scary out there," Carlson said. "The stock market, it's going to struggle a little but that's going to be okay. I think we're going to see up days along with down. and as we get through summer, I think we are going to see some of this coming back. So again, just relax a little big, don't sell, don't panic with your investments. Remember they are long-term. They are meant to get you all the way to and through your retirement."

Carlson added that he believes the intervention by the Federal Reserve and the Congressional stimulus plan, however it turns out, will be good for investor confidence, and for the economy as a whole.