Excerpt from Financial Advisor magazine, published March 3, 2020
Eric Walters, managing partner at SilverCrest Wealth Management in Greenwood Village, Colo., says he started hearing from clients last Thursday and Friday. “They are concerned about the novel nature of a pandemic and the sharp drop in the markets. I pointed out that in the three most serious flu pandemics in the 20th century, the stock market was mixed, but generally positive. I also shared historical data that a correction of 10% to 20% happens approximately every two years and is corrected within four months.”
Of course every situation is unique and this virus may lead to lower global growth and even rolling recessions for the countries most affected, Walters admits.
“However, I still recommend that long-term investors maintain their discipline and not sell,” he says. “Many of my clients are asking about rebalancing to buy into cheaper equities, which I feel great about because it shows they have a long-term mindset and listen to us.”