SAVANNAH, Ga. (WSAV) – There are no cases of the Coronavirus in Georgia but an illness that began thousands of miles away is still affecting your retirement savings. Friday, the stock market plunge continued with the Dow Jones Industrial Average losing about 4,000 points this week, rivaling a week in 2008 during the financial crisis.
Michael Dayoub a financial planner in Savannah says “we’re actually in correction territory now.”
That may be the case but a lot of investors are jittery about how the Cornavirus may affect the world economy which in turn has led to losses. Still, Dayoub says he would caution someone about just getting scared enough to abandon the market. “I’d be reluctant to recommend somebody react to market movement in just one week,” he told me.
He believes in the market and says “people who panicked in 2008 or 2000 or any of the other corrections and got out (of stocks) talk about how much they lost and we said did you need that money right away and if you didn’t why didn’t you wait until the market corrected itself because it will.”
Dayoub says the market always comes back, although he acknowledges in 2008 it took about four years for gins to be recovered.
“It’s probably the wrong week to react, we’ve had viruses before, we’ve had Zika, Zars, Ebola – terrifying viruses in the last 20 years but still, the markets have quadrupled in the last 20 years so we’ll get through this one and those who don’t react will do the best,” says Dayoub.
He suggests younger people stay the course and says people of all ages may want to just save more because most “Americans don’t have enough savings.”
Dayoub says saving more may give you more of a sense of control because you can control your spending and saving if not he stock market. He does suggest that older investors make sure they have enough bonds in their portfolio since bonds are normally considered a safer investment.