ARIZONA, USA — No doubt the abrupt drop in the stock market Thursday has many Arizonans worried about what they should do next. The Dow dropped more than 1,000 points on what was Wall Street’s worst day of the year.
Financial Analyst Jason Richards of Autus Asset Management warns he typically sees people “making mistakes in difficult times.”
“And it’s really hard to make up for those mistakes,” Richards said. “History tells us that selling in a bad market typically is not a good strategy.”
Richards says people who see their portfolio go down in value over time may be tempted to reach for more extreme investments like Bitcoin, real estate, or commodities.
“We really like the discipline of staying the course,” Richards said. “When the markets are down we still collect interest. We still collect dividends. There’s cash flow for people that need that income.”
Richards says markets will typically be overbought and oversold but eventually, they return to fundamentals.
“The market will recover, even if we go through a recession,” Richards said.
The stock market Thursday was rattled by reactions to a rise in interest rates.
The feds’ decision to raise interest rates may be shaking up the markets today, but in the long term is meant to ease inflation, experts say.
“I think sticking with high-quality, liquid investments will get the typical Arizonan through this tough time,” Richards said.
Up to Speed
Catch up on the latest news and stories on the 12 News YouTube channel. Subscribe today.