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Financial advisers say history could repeat as coronavirus impacts markets

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MADISON (WKOW) - In the face of the Dow's worst one day drop ever Thursday of nearly twelve hundred points, the advice of financial advisers includes learning from history.

Local financial planners say they are hearing from their clients, but say concern, not panic, is being expressed.

The stock market drop this week makes it the market's worst week since the financial crisis of 2008.

Some analysts say people are turning to lower-yielding, but more stable investments such as bonds.

Financial adviser Brent Lindell of Madison's Savant Capital says while the market's recovery from the great recession took longer than previous rebounds from events such as the technology sector bubble-burst, it shows the stock market's resilience over time.

Lindell says there was a down side for investors who sold off assests in the '08 crisis.

"There's a few people you'll run into from time to time during the great recession who will say, 'Hey, I got my money out.' And then the vice versa is, 'What did you do with that? Did you sit on cash? ' That really didn't pay you to fight the rate of inflation in our country," Lindell says.

He also says the current slump in the face of fears over the spread of the coronavirus also presents an opportunity.

"When you've seen the historic market, which was two weeks ago up here and it's down now here, everything is on sale," Lindell says. "That is another aspect of this: you actually have some people buying in the face of the storm."

Lindell's advice to investors includes staying the course during this market correction connected to the coronavirus. If you are retired or close to retirement and relying on your 401k or pension, the advice from financial consultants includes making sure you have a balanced investment portfolio.

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Tony Galli

Reporter, WKOW

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