Financial advisor offers advice on buying and selling stocks in this market
Major stock indexes were up slightly Monday after a bad close to last week. Stock markets are hoping they're nearing the end of a seven-week plunge.
The S&P 500 was up almost 2% at close Monday but still down nearly 18% on the year so far.
Steve Haberstroh is a financial advisor with family-owned CastleKeep advisors in Westport. He says you shouldn't be buying or selling based on what the market is doing today.
Experts say when you're getting close to retirement, some cash on hand can help get you through down spells in the market.
For younger investors with a longer time horizon, Haberstroh says low prices means you can buy more shares of stocks you feel good about.
"Keep accumulating. This is actually a good thing if you're a long-term investor, even if it's quite painful in the short run," he said.
Haberstroh says corrections come every few years, but the markets always make their money back in time.
"The worst return for any 20-year period since 1957 has been an increase of 1%," said Haberstroh.
Returns on usually safer treasury bonds are down this year, too. Haberstroh says if you want the bigger gain potential of the stock market, you do have to sign on for the risk.
"You can't protect truly yourself from very large drawdowns in markets like these unless you don't want to participate in the upside," he said.
Analysts say the market sees a "correction," a drop of 10 or more percent every 2 1/2 years on average. A drop of 20% or more is bear market territory.