Stock Volatility Continues
Should You Continue To Invest?
Sorry, this video is no longer available
If your retirement depends on the stock market, you’ve probably been watching the numbers on pins and needles lately. They are continuing to roller-coaster since the start of the New Year.
Since Lenny Roehrich started retirement, he has shifted his focus towards investing in the stock market.
“Trying to keep me afloat all the time so I can keep some money coming in so I can take money out,” says Roehrich.
He hired a stock broker to help him with what can be a challenging industry.
“I’ve tried these dollars trades before and they didn’t work out so good,” he explains.
So far, 2015 hasn’t been ideal for investors like Roehrich.
“The market really has been what I’d say is volatile. We’ve seen a lot of major swings day to day sometimes a couple hundred points to the upside followed by a downside swing that’s really not normal for market early, this early in a year,” says Jeremy Elbert, Senior V.P. of RBC Wealth Management.
Most people are enjoying the significantly low gas prices, but these prices are one of the contributing factors to the volatile market.
“Between oil, the issues overseas, interest rates, the Fed policy, and company’s earnings, there’s a lot of factors at play right now that create this daily volatility,” Elbert says.
But for people like Elbert who check stocks every day, this type of market behavior is not unusual. In fact, for first time investors, this is a good time to get started.
“Volatility honestly can be your friend I know it’s hard to understand. But when you look at oil now at some of the lowest levels we’ve seen in many years, and you look at some of those energy companies that have dropped 40-50 percent, it might be a time to take a look at them for a long term buy,” he says.
Elbert also said that longtime investors shouldn’t make any rash decisions. Stocks have been surging for nearly six years so this drop was not unexpected and it won’t stop people like Roerich from continuing to invest.
