Local Advisors Say Market Pullback No Cause For Alarm
BOSTON (CBS) --- The stock markets were doing well until about the middle of January. That is when the Dow Jones and all major stock exchanges began to tumble. So should you be taking a fresh look at where your money is invested?
There were green arrows on Wall Street, a rare sight over the past couple of weeks where stocks are off more than 5-percent to start the year.
Financial Advisor David Caruso of the Coastal Capital Group in Danvers says everyone with a 401k who is not retiring next year, should calm down.
"It is natural. We had a market last year that was up 32-percent with very little change," Caruso said.
Caruso says everyone should get professional advice and know their time frame. But he says historically, a 7-percent pull back is nothing. In fact, he points out in the past five years there have been more than 15 price drops in the 5-percent range. And he says a normal market could have two 10-percent corrections a year.
"The biggest risk is not accomplishing your goals and you are only going to accomplish your goals by buying stocks and holding on to them for a long period of time. Because if you put your money in a bank now and get one percent, it is going to take you 72 years to see that money double."
In Salem, at Cabot Wealth Management, advisor Dennis Wassung is even more bullish on our economy and the market.
"What you want to be doing is putting money to work when everyone else is fearful, Warren Buffett is famous for saying: "you want to be greedy when people are fearful and you want to be fearful when people are greedy.'"
Both financial advisors see better days ahead, but they also are not convinced this pull back is over either. In fact, David Caruso says look out for Friday when another employment report is due out.
MORE LOCAL NEWS FROM CBS BOSTON
