Stock market selloff may be an opportunity to invest

Monday, February 05, 2018 11:20PM
Financial advisers and analysts across the U.S. are saying the recent stock market sell off is not a reason to panic and sell or abandon your long term investment strategy. In the near term, it may actually be an opportunity to invest.


SAN FRANCISCO - Financial advisers and analysts across the U.S. are saying the recent stock market sell off is not a reason to panic and sell or abandon your long term investment strategy. In the near term, it may actually be an opportunity to invest.

On Monday the Dow Jones fell more than 1,500 points before ending the day down 1,175 points.

The wild day on Wall Street spooked many investors caught off guard after such a long stretch of stability. "I saw some of the numbers, they look pretty concerning," says Rob Myer who is visiting San Francisco from Pittsburgh.

RELATED: Dow plunges 1,175 points in worst day for stocks since 2011

Ramsina Tamrazi is also visiting San Francisco and says the plunge, "does affect my savings," adding, "you don't know when it's going to come back." While that may be true, perspective is important. While the last two market days have seen extreme losses, the moves have been minor in percentage terms and well within historical norms.

Eric Aanes is the president of Titus Wealth Management in Larkspur. He explains that part of the reason for the recent market volatility is because the U.S. economy is so healthy. Jobs and wages are picking up, consumers and businesses are spending more and Americans generally haven't been running up heavy debts. All that economic vigor is why investors are now worried about inflation, which may spur the Federal Reserve to raise interest rates to keep inflation in check. "Everyone is making more money, they're spending more, the dollar becomes stronger, our exports become weaker, so there's a balance between the two," explains Aanes.

Aanes sees the sell of as an opportunity to buy, "we feel like it's a short term market correction." He recommends people look to invest outside the U.S. and in consumer staples, "everything from Costco to Proctor and Gamble," suggests Aanes. He also recommends short duration bonds, "instead of going out 10 years, maybe you go out two years only."

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