Investors caution against pulling out of stocks
Americans might be tempted to empty their stock portfolios after seeing July’s jobs report and Monday’s market carnage. Investors say that’s a bad idea.
Stocks are extending their declines from Friday, when a dismal jobs report spurred fears that the US economy is on shaky legs.
“You never want to indiscriminately pull money out of the market because timing the market re-entry correctly is extremely difficult, causing investors to potentially miss out on rebounds and future growth. If anything, what we are seeing is the benefits of a balanced portfolio,” said Christian Salomone, chief investment officer at Ballast Rock Private Wealth.
Mark Hackett, Nationwide’s chief of investment research, said investors should use Monday’s selloff as a buying opportunity. He recommended seeking out bargains in small-cap, value and international stocks.
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