Why experts say you shouldn’t be concerned over short-term stock market changes

first_imgBinghamton University professor, Dan McKeever, told 12 News these three to four percent drops are relatively common. Even with these drops, he said the markets have increased by about 10-percent every year since the financial crisis of 2008. McKeever said because of its volatile nature, the stock markets are extremely difficult to predict, making it almost impossible to know when to truly make a move. Outside of people who may be closer to retirement, Professor McKeever suggested investing for the long run, which would make you less susceptible to short term drops like the one today. “If you are an older person or an older investor who’s closer to retirement, this may be a good time to contact your financial advisor and say, what’s my level of risk here,” McKeever said. “Should I be looking for safety given that I have so few years of earning left to protect this portfolio?” He said while most people have nothing to really worry about, there is one group that should take a second look. The answer for whether you should be concerned or not depends on how old you are and how much you have invested in the markets, but for most people, this is no time to panic. “I don’t think about it in terms of percentage drops, I think about it in terms of fundamentals. If you see that companies are failing to earn money, forget where there stock prices are today, but if you see that companies aren’t profitable, that’s when you get concerned,” he said. “Right now I don’t think that there’s any reason to be concerned about the profitability of companies.” (WBNG) — Stock markets dropped three and a half percent on Monday, largely due to fears over Coronavirus, but what does this really mean for you at home? He also said not to make decisions on shock value alone.last_img read more