Finances at Four: Dealing With Market Drops

When the market drops, fear can make people sell out—even when it means their shares sell for less than what they paid for them.

But a market drop can actually be a good thing, according to Financial Advisor Carl Kielbasa, with Carroll Retirement & Investments.

Even if it doesn’t feel that way.

And selling low out of fear is just about “the worst possible thing you can do,” Kielbasa says.

That’s why Kielbasa says financial advisors can help you get better returns, because they act less on emotion and more on reason.

“I’m not emotionally attached to my client’s money,” he says. “So I can take some of that emotion out of it and use the logic behind the investment world to say things are going to be fine. Or, you know what, things aren’t going to be fine we need to make an adjustment here.”

With that in mind, here are a few things the financial advisor says can help you deal with losses when the stock market drops.

The good thing about a market drop

Buy low and sell high.

That’s the goal of every investor.

And it’s also why a market drop can be a blessing for investors with time to wait for the bounce-back.

“You’re getting to buy something that is on sale,” Kielbasa says. “When I talk to my clients about this and I grasp that idea they’re excited to either invest more, or hold on and stay right where they’re at because we realize the market is going to come back up, more than likely. It always has.”

How to build confidence

And when the market does bounce back, so do your investments.

But if you need someone to help you feel confident, Kielbasa says there is no one better than an advisor to help you.

“Financial advisors help take the emotion out of it help put some logic behind it and hopefully help their clients feel more confident and have a little less anxiety about the market,” Kielbasa says.

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