YOUNGSTOWN, Ohio (WKBN) – After a tumultuous day on Wall Street Monday, many investors are wondering where to go from here.
Buy or sell? Or simply ride out this latest plunge?
Todd Bury owns Bury Financial Group in Poland. He’s been giving financial advice for decades.
And every year, he says, there’s always something new causing the market to plunge.
“In the short run, the news headlines really do drive the stock market,” Bury said. “And right now, the fear is China and the slowdown in China.”
That fear drives people to make rash decisions, which he says is the worst thing you can do.
“Number one: Don’t get emotional. That’s probably more important than picking the very best investment,” Bury said. “(Because) no matter how good an investment you had, chances are it was down today. And if you got emotional and sold and did the wrong thing at the wrong time, then you lose.”
Bury says the U.S. stock market is actually in pretty good shape.
“As far as earnings, corporate earnings, and that’s what we feel is most important in the long run,” Bury said. “If corporate earnings are strong, then the stocks will follow in the long run.”
But that doesn’t mean there won’t be bumps in the road.
“In the short run, you’re gonna have days like today, and it’ll really test your nerves,” Bury said.
He says as long as you’re properly diversified and have a long time horizon, you’re probably in good shape and don’t need to do anything. Studies show that it’s sometimes best to not even look at your portfolio.
“There’s a direct correlation to how well they did in the market. The ones that looked once a year actually outperformed everyone else,” Bury recalled of one such study. “Versus the ones who looked once a day, they were the worst performers.”
In fact, the best performers were the ones who forgot they even had an account, and just let it be, according to Bury.