After Wednesday’s stock market dive and the recent U.S credit rating downgrade – many began to question what they should be doing to safeguard their nest egg.
Senior Investment Officer at Community Bank Bruce Lee said recent fluctuation in the stock market has been higher in a single day than what would be expected in a period of months. Despite the market swings, both the U.S and foreign stock markets have performed well – but there are concerns going into the future. He wants to remind individuals the reason behind their investment is to make money but this will be over longer periods of time.
"If you’re uncomfortable with the investment change that has happened as far as value in the last week then it’s probably time to reevaluate why you are invested the way you are," said Lee.
If you were skittish during the recent market swing, Lee suggests reinvesting into something more dependable and gradually selling into market rallies. He said investing for the right reasons is critical and a peace of mind is likely more important than the opportunity for higher expected returns.
"It is not the time to let emotions cause us to make imprudent changes in our portfolio that will harm us in our ability to reach our financial goals," said Lee.
Lee assures the economy is not on the brink of another 2008 meltdown. Today, banks in the United States and in Europe are much better capitalized so we are not likely revisiting the market failures of 2008.