Don’t Panic: Year-End Market Drop Was Mere Pullback
2019 rebound isn’t guaranteed
Lloyd A. Sacks, a financial adviser at Bridgewater-based Sacks & Associates LLC, evoked an old adage when talking about the current conditions: The market likes to take the stairs up, and the elevator down.
“The rebound could be short-lived,” Sacks said. “Investors know we’re in a bit of a different world. We’re at the tail end of the largest economic expansion in our country’s history. As everyone says, the way things were going for such a long period of time was unsustainable.”And for how long the staircase upward will go on is anyone’s guess.
Sacks takes the position that more of a downturn is almost certain, and for older clients with a shorter time horizon on their investments — that’s a reason to rethink where their money is parked.
“At least for those clients, I’m recommending a higher dedication to something like the fixed income market, and a lightening up of volatile equities such as tech names like Nvidia,” Sacks said.
As much as he’s a fan of the growth stories of some of these tech names, he’s advising a paring back of investments into them ahead of any more market turmoil.
“In this case, it’s better safe than sorry,” he said.
