Financial adviser: Try to not panic as stocks take another nose dive

Josh Chapin Image
Thursday, May 19, 2022
Financial adviser: Try to not panic as stocks take another nose dive
As stocks begin to nose dive, one financial advisor says try not to panic.

RALEIGH. N.C. (WTVD) -- There are some things Melinda Mathews tries to do to save, but there are expenses she can't avoid.

"I just cut back where I can, I look for sales at the grocery store," she said. "My husband drives for Uber and Lyft so he relies on gas. Gas is something we have to eat no matter what."

There is no timetable for when costs on Main Street might get better.

Wall Street continued its rollercoaster Wednesday over fears that inflation might cut into corporate profits.

"It's okay to feel fear at times like these," said Michael Minotti. "It's a natural way for us to feel."

Minotti is a financial advisor with Edward Jones and he said fear is one thing but not to panic.

"The natural instinct is to cut and run or I'm going to cut my losses and go to cash, but the problem with that is you miss the recovery," Minotti said.

He said unless you are weeks away from retirement, you should ask yourself if the volatility will change anything in three to five years.

Minotti also feels the indiscriminate sell off we've seen is a good sign we're getting close to rock bottom. He believes inflation has started to ease slightly in the housing and used car markets, but bottom line is to hold steady.

"Fear is a very powerful emotion and it's a powerful motivator and I understand that," Minotti said.

Minotti advises that if you are having any fear the first thing to do is to talk to a professional or talk to a financial advisor to insure that your goals are aligned.

If you do have any extra capital lying around, now might be a good time to look for a small opportunity to invest in something.