GREAT FALLS — Fear of the stock market has been a buzzword in the news lately. But what does that mean, and how much trouble and potential problems do we really have in front of us?
Lynda Morin, Branch manager and Senior Vice President at DA Davidson said, “At this point in time is when you remind people that stocks are a risk, reward of investment. And there are some risks when we invest in stocks.”
Despite the concerns, Morin is not worried about the markets.
Morin said, “There are almost always what we call corrections which is a pullback. And this is a correction.”
Morin explains that the markets do not like uncertainty, which is what a new presidential administration brings about, as well as the unknown from potential tariffs.
Morin said, “If this is really bothering you, it's a good time to look and say, okay, what is my real risk tolerance? Should I own less stock?”
Andrew Leavitt, a money expert from Nevada said, “The last thing you want to do right now is be on auto pilot.”
Leavitt thinks there is more cause for concern.
Leavitt said, “You've got a combination of markets getting worse and you have inflation still increasing which is the worst possible combination. It's the perfect storm.”
Leavitt thinks that we are on the precipice of a stagflation problem and worries Thursday reports regarding inflation and unemployment numbers will be detrimental.
Leavitt said, “Rates continue to stay high and prices continue to go up. And a lot of that to do from the money that was printed a couple of years ago.”
Morin argues that we are not heading toward a crisis; that it is simply a market correction.
Morin said, “We're in a time of uncertainty. There's no question about that. But because of 2008, there were so many rules and regulations put in place for 2008 not to happen again,”
In fact, her best advice is to invest more into your 401k or open an IRA as soon as possible, and try to take the emotion out of the investing.
Morin said, “If you invest a similar amount every month, take the emotion out of it. That's how people gain wealth.”
Even in these uncertain times, young people are advised to start investing in some way now, because their best asset is time.
