SARASOTA, FL (WFLA) -Investors and money experts all across the Tampa Bay area were watching the markets Monday morning. The stock market turmoil hits people right in their wallets, and many wondered if this could be the beginning of something worse.
Right after Monday’s opening bell, the Dow plunged more than 1000 points. Economic uncertainty in China is scaring investors here in America, like Frederic Jacobs. “If there’s a drop in the stock market, then there’s a drop in our net worth,” said Jacobs.
Financial planner Scott Barcomb received calls throughout the morning. Barcomb said, “There’s a tremendous amount of fear that has veered into panic…don’t sell into panic.”
He says this fear is reminiscent of 2008, when the US teetered on the verge of a recession. “These were real significant events that threw the world into a global crisis, financial crisis, global recession that bordered on depression. And yet we’re seeing a similar level of fear,” Barcomb said.
But the financial planner reminds investors they should not worry. Instead they should be patient. “My general advice is if you’re in cash, don’t buy. If you’re in the market, don’t sell. We don’t really know what’s going on, just sit tight, put your seatbelt on and ride through it and wait a little while before you make some decisions,” said Barcomb.
Barcomb says along with the concerns in China, investors are skittish because of a global slowdown in economic activity, and the possibility the feds will raise interest rates. “There are multiple, smaller reasons to be concerned, certainly, but not to cause this level of panic,” explained Barcomb.
Despite the rough morning, Jacobs is still confident about the stock market. Jacobs said, “Don’t panic, and over the long haul the stock market and publicly traded stocks are the best investment you can possibly make.”
So at what point should you panic? Barcomb said it’s wise to never panic. He explained, “You should never panic, because when you panic your mind is clouded and you’re making bad decisions, so you should never panic.”
Barcomb said if you’re nearing retirement, you should review your portfolio and make sure you’ve done significant retirement income planning. And Barcomb has some promising news for those who are longer term investors. He said, “For people who are longer term investors, I would not sell into this panic, which is exactly what I think it is. I would ride through it and there may be a very good buying opportunity soon”