Zandi added, though, that investors likely haven’t seen the worst yet, given the growing spread of coronavirus and the many questions surrounding its transmission and fatality rates. “This suggests it's going to be highly disruptive to the economy. A 20 percent decline would not be out of the question… but that still doesn't mean you go out and sell,” he said.
“For people who are already retired or who are close to retirement, they should have a portion of their assets readily available in cash equivalents so that when they need to dip into funds for living expenses, the funds will be available,” said Mitchell Goldberg, president of ClientFirst Strategy. That’s because of the negative sequence of returns principle, which means that people who have to cash in stocks when the market is falling wind up having to sell more shares to net the same distribution value — so when the stock market recovers that person will have fewer shares available to make up their losses.This doesn’t mean flee the stock market entirely, but having a cash cushion is advisable for people either in or near the distribution phase of their investing timeline.
“This is a very different kind of downturn than one we've ever experienced before,” Goldberg said. “Typically, in a downturn, consumer staples and healthcare are the kinds of stocks that will do well. Now it’s ‘screen stocks’ — companies that will allow you to work remotely, companies that keep you entertained, give you information,” he said.
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The Washington Liberals are going out to celebrate the market crash again tonight! Pelosi and her puppets are celebrating as they destroy your retirement accounts!
Why not buy more while they are cheaper?
Don't sell until after the experts have managed to sell theirs first. Then they'll buy them back along with yours when they are low.
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