DUNMORE, LACKAWANNA COUNTY (WBRE/WYOU-TV) — Coronavirus is taking a toll on more than global physical health.
It’s having a serious impact on financial investments. Stock markets plunged for a second straight day on Tuesday leaving many of us worrying about our 401K’s. Eyewitness News Reporter Mark Hiller got some professional advice on weathering the financial storm.
As the headlines scream “market selloff”, I&M Wealth Advisors President Lou Ingargiola has been taking calls from nervous investors.
“We’ll discuss it, so what are you concerned about?” he said.
The concern centers on clients’ investment portfolios following the seismic financial impact of a farther reaching than expected coronavirus outbreak.
Just one day after the markets’ biggest drop in two years, Tuesday’s trading day continued a deepening slide. So, should you sell or sit tight?
Mr. Ingargiola said, “There’s a lot of fear but panic isn’t a plan.”
Market plunges of the past caused by the turn of the century dot com bust, the 2003 SARS outbreak and more recently the 2008 financial crisis are proof investing isn’t for the faint of heart.
Mr. Ingargiola said, “Most of those people who panicked out of the market probably never got back in and therefore missed out on the last 12 years of one of the greatest bull markets of all time.”
While Mr. Ingargiola tries to calm investor concerns, he is keeping a cautious eye on coronavirus and those factors that could have a deepening impact on the markets.
“Does it go from epidemic to pandemic? Do we see earnings rapidly decline in the markets and these companies? Is everybody going to be holding back?,” he questioned.
Mr. Ingargiola said it’s just too early to tell but added that the current financial climate is proof it is necessary to diversify your investments.
“We’re not about trying to pick one industry or one stock because that usually ends up a loser’s game. That’s more gambling than good, sound investing,” he said.
Mr. Ingargiola said he considers the impact coronavirus is having on the markets as a blip. He added that the markets need to come down every so often and that, right now, coronavirus serves as the excuse.