TUCSON, Ariz. — Stock values have risen during the pandemic and more people have opted into it, but what goes up must come down.
“For anyone that is wondering, is the market going to go up or is the market going to go down, or is there this catastrophe looming if you will, and I always kind of jokingly say. If I knew that I probably wouldn't be chatting right now, right, because we all don't have a crystal ball,” said Tiana Ronstadt, a financial planner with Power Women Investing.
Ronstadt says Dr. Quincy Krosby with Prudential, Jay Paul with the Fed, and Larry Fink with BlackRock all say market indicators are looking good at the moment.
“You need markets to go up and down so anytime that there is this loom I always say well let's look at the good that's come from any decline that we've ever seen,” said Ronstadt.
She says the stock market is like a tennis ball, bouncing up and down.“You want markets to be fluctuating that is the definition of a stock market is for it to fluctuate, it is not declining constantly and it's not constantly rising, that is how you actually make money is dollar-cost averaging in a fluctuating market,” said Ronstadt.
But for those still concerned the stock market may crash soon because of how well it has been doing and more people getting into investments, she has these three tips:
“Number one continue to save continue to invest because really when we talk about the market we're talking about investing not saving. Second, I absolutely do not ever recommend to sell out of something the concern I have with that unless there's a justifiable reason but I'm saying just for fear reason, the reason is, when will you ever get back in? Then my third tip would be that you need to make sure that when you're investing you're investing for a timeframe that is that minimum over five years,” said Ronstadt.
If you're already investing, you should know the risk involved if you're already putting money away into the stock market. But Ronstadt also suggests moving your investment funds into a more conservative allocation if you are worried about a lot of movement.