Coronavirus fears cause stocks to drop; finance planners say, ‘It’s time to buy’

Local News

MONROE, LA. (03/09/2020)– As the number of coronavirus cases continues to increase, the stock market is doing the complete opposite. Dow Jones Industry closed down 2,000 points in largest daily point loss ever.

“There’s never a scenario in the stock market where you need to panic. Panic is an emotion and without a doubt in past history, when you make an emotional decision in the market, it’s the wrong one.”

On February 19th, the stock market hit it’s all time high. Although the coronavirus has had an impact on the market Darren Oglesby, CEO of Oglesby financial group, says the decrease isn’t something to panic about. That’s because the market still has not hit a bear market level. That’s when the price of an investment falls at least 20% or more from it’s yearly high.

“We haven’t seen one of those in almost 12 years, so we went into this both long-term and temporarily overbought,” Oglesby said. “The market was just looking for a reason to sell off. Well it found that reason, the Coronavirus.”

Oglesby says the market hit correction levels last week, which is a sell off of 10 percent, but the major indexes are almost at the bear market levels.

“If history repeats itself, and that’s the big ‘if’, if history repeats itself like it’s always done, the playbook is pretty clear,” Oglesby said. “You do not sell right now unless you absolutely have to have the cash in the next 3-6 months.”

Oglesby says investors should do the complete opposite and see this as a buying opportunity in select categories.

“Put some of that cash to work in categories that have been oversold, beaten up, or where others have sold in a panic,” Oglesby said. “There are some opportunities that lie in buying some of those methodically over the next few months. If history repeats itself 100% of the time, if you would have done that in the past about 6-12 months later you were very happy that you did.”

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