PITTSBURGH (KDKA) — The Dow closed up 429 points after a late rally Tuesday.
Since the U.S.’s credit rating was lowered, the stock market has been a roller coaster.READ MORE: COVID-19 In Pittsburgh: Allegheny Co. Health Dept. Reports 430 New Cases, 1 Additional Death
“You get calls. People are worried about, ‘What are you doing to protect my assets? What actions are you taking?’” John Martin, CFA, PNC SVP Managing Director of Investments, said. “Those are key things.”
Investment management is nervous system management these days.
“History has shown that knee jerk reactions, emotional reactions to big market moves are almost always the wrong decisions,” James Meredith, CFA, with Hefren-Tillotson, said.READ MORE: UPMC, AHN To Pause Distribution Of Johnson And Johnson COVID-19 Vaccine After FDA, CDC Call For Pausing Use Due To Blood Clot Concerns
“Panic and jump is not a good strategy because this is just a short-term movement,” Martin added.
While the market rode the first half of the day in positive territory, those in the investment business say the advice is the same regardless of today’s movement.
“If you need the money within a year, two years, it shouldn’t have been in the market to begin with and it probably makes sense to pull it out,” Meredith said. “If you’re a longer term investor, the best thing you could probably do is just ride this out.”
“Stick to their long term objective and don’t do too much messing around in between,” Martin said.MORE NEWS: Watch The Derek Chauvin Trial Live