Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Mar 31, 2020

During a time of international crisis, like with the COVID-19 pandemic, the stock market is wildly unpredictable. In a matter of days, we’ve seen the DOW Jones hit all-time single-day drops and then crawl back upward. S&P 500 and Nasdaq have also plunged and mildly recovered, only to drop again.

The COVID-19 crisis is not over yet, and we can expect the market to continue to fluctuate day over day. It’s during times like these that investors need to know how to make wise decisions instead of selling out of panic.

Navigating the stock market during a crisis

We get it. It’s difficult not to panic when you see the DOW Jones take a record breaking single-day dive — not once, but twice — in less than one month. However, it’s during times like these that we need to collectively take a breath and not react in fear.

There are a couple of things to keep in mind when it comes to navigating the stock market during a time of crisis:

  • Investors who panic-sell tend to never make it as long-term investors. The general idea of investing is to buy low and sell high. When you panic sell, you translate a theoretical loss from a chart into a real one.

  • This could be an opportune time to make investments. Wise investors can make the discernment between markets that are struggling due to poor performance versus markets that are struggling due to panic-selling. If there is a market you believe will yield positive returns on investment (ROI) in the long-term, now might be the time to invest.
  • You don’t need to manage your finances on your own. Financial planners spend their professional careers navigating the stock markets and are trained and skilled in dealing with times of financial volatility like the COVID-19 crisis. Talk with a certified financial planner about your current financial circumstances and review your options with them before making a decision on whether to sell, buy or ride it out.

Navigate the volatile market with a Certified Financial Planner™ (CFP®) from ProVise

Our CFPs at ProVise Management Group have been around the block a few times. We’ve seen the highs and lows of the stock market, and we have decades of experience helping our clients navigate these shifts for their benefit.

If you’re ready to talk to a certified financial planner about your investments or have other financial questions relating to COVID-19, contact ProVise Management Group today.