There are dozens of confirmed cases of the coronavirus in the U.S. and as the virus spreads, so does its global impact. Last week the stock market suffered its worst week since 2008, only to rebound today. How to keep your investments secure through this tumultuous market in tonight’s Your Money Matters.
“There’s been a lot of panic,” Arion Mustufa of Sioux Falls said.
“I think it is definitely affecting our stock right now,” Angie Boeckholt of Sioux Falls said.
The coranavirus is being blamed for the stock market’s worst week since 2008.
“What’s really unusual for me, having been in this business for over 30 years, is the speed of the decline last week in the market,” Graff Capital President Neil Graff said.
In just one week, The Dow dropped nearly 12.5 percent while the s S&P 500 dropped 11.5 percent.
“I’ve never seen a decline in the market that happened over that short of period of time,” Graff said. “The 2008 debacle was over an extended period of time, it went down in small increments, this particular decline went down over such a short period of time that it really did get your attention.”
“I had just started working so it wasn’t too bad then, I have a little more invested now,” Glay Korenek said in downtown Sioux Falls.
This sudden drop has many investors paying closer attention than back in 2008.
“Hopefully I’ve got enough time for it to come back up,” Korenek said.
“I think it will bounce back, I don’t know how long it’s going to last though, who knows how long this is going to last. If I was younger maybe it wouldn’t bother me so bad, but it does concern me a little bit,” Boeckholt said.
“People who are on the verge of retiring or have recently retiring, this is the worst possible thing that could happen to them. Because not only are they taking money out of their retirement plans, but the market is falling 11 percent, that could have an impact on their overall finances,” Graff said.
Unless you’re on the verge of retiring, Graff says most investors will be best served riding out the market impacts of the virus.
“We’re seeing that today, the market is stabilizing and we’ve regained a substantial amount of last week’s decline, and for the long term I think the best course of action is to stay the course, let the markets determine your returns, and not you as an individuals trying to time the market. That usually is the best action to take for the small investors,” Graff said.
The stock market closed with its largest single day points
gain ever–up more than five percent. But market experts say investors can expect
more fluctuations in line with developments in the coronavirus.