Experts provide insight into the current financial situation.
As coronavirus concerns continue to spread, you may have noticed fluctuations in the financial markets. It’s common for outbreaks to impact economies because it can lead to work stoppages, travel bans that affect tourism and trade, cancellations of significant revenue-making events, and investors pulling back.
It can be stressful to think about investments and the market right now, but markets have historically bounced back. Experts have also been predicting a market adjustment for the last few years, but indicate that having a long-term plan is key to riding out the problematic periods.
Though alarming, financial downturns usually self-correct over time. In the meantime, there are some things investors can do, according to the experts. “Be sure you are properly diversified and don't have ‘all your eggs in one basket,’ says Ryan Hill, AIF, MassMutual retirement plan specialist. “Also, pay attention to your time horizon for investments. Your shorter-term investments may not have time to recover from large downturns if you need liquidity. For longer-term accounts like retirement plans, it's important to try and stay the course and not panic. It's difficult to ‘time’ the market and to know when to jump out as well as when should you get back in.”
While the uncertainty around the virus contributes to the turmoil in the financial markets, financial strategists and analysts say coronavirus isn’t the only thing impacting it. It’s essential to work with your financial advisor on a plan of action that you think is right for you and your financial goals.
We know many have concerns about their retirement plans or investments, which is why we turn to our partners and financial experts at MassMutual. The trust company recently released an investment update that provides some perspective on the current economic situation and what you can expect. Click here to read the full release.
Disclaimer:This article isn’t written or intended as specific financial advice. Please consult your financial advisor for any investment questions or opportunities.
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