With the threat of the coronavirus disease outbreak still looming, a D.C.-area financial expert said it’s going to a bumpy road ahead; and with the market in flux, it’s not the time to make drastic changes to your portfolio.
After the worst week for stocks since 2008, investors saw a market bounce Monday when the S & P 500 index closed up by over 4%鈥� due in part to a rumor that the Federal Reserve would drop interest rates.
“The market is likely to remain volatile until we have some visibility on the outcome of the coronavirus crisis 鈥� The market hates uncertainty,” said Peter Tanous, chair of in D.C.
“This is uncertainty on steroids,” he said.
Tanous said all the market needed was a catalyst 鈥� and it got one in the form of a rumor of a decision at the Federal Reserve.
However, investors have asked him if they should lessen their stock allocation.
“If your asset allocation was the right one for you a week ago, it still is the right one for you. The idea is not to be shaken or not to panic when markets go down 鈥� For the long term, they always go up,” Tanous said.
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