While the market gyrations of the past couple of weeks have smarted, many financial advisers are telling their clients to remain with the, The Globe and Mail reports. In light of the fact that the markets have soared since 2003, many are simply calling the declines a market correction.
“Some of my colleagues in the office here have had clients call them saying they want to bail out,” said Greg Holohan, an adviser with ScotiaMcLeod. “But the vast majority of people understand this is one of those things that will happen from time to time and that eventually everything will iron itself out.”
“Don’t sell into a seriously down market,” said Liz Lunney, senior vice president and portfolio manager at Fiduciary Trust Co. of Canada, a division of Franklin Templeton Investments. “Don’t realize those losses. If you had an appropriate plan to begin with, then hold to it.”
Nonetheless, some believe S&P 500 could lose as much as 20% to 40% of the 14,646 high it reached last month. That means it could fall to 11,700—or even as low as 8,700.