‘After The Bell’ airing on Fox Business hosted Mark Matson to discuss wealth transfers during a time of uncertainty in the stock market. When’s the best time to buy? Is there a specific time to get into the market? Those questions can’t be clearly answered by anyone about the market because it is generally unpredictable, but there are ways to hold steady. Any time you are in the stock market, you want to look at equities in the long-term and be consistent: you want to focus on something for the next 20 years and not the next 20 minutes. It’s best to ignore short term volatility because they can generally see lower returns and aren’t worth the investment according to Matson’s philosophy.
Every time the market crashes, investors should be thinking, “Opportunity! Opportunity! Opportunity!” Because buying now when everyone is panicking can turn into a long-term wealth transfer if you hold out long enough. Say for instance the market does fall. Matson wants his investors to focus on the market as a whole and have a well balanced portfolio with their picks being situated for the long haul. However, avoid long bonds because they are risky in terms of interest rates and have the potential of harming your bond portfolio. When everyone in the market panicked in 2009, that could have been the opportunity for wealth transfers.
It’s all about keeping your investors from panicking and looking at the market with a long-term plan and strategy so they can have the potential of making great returns. Shying away from trending and popular stocks is another investment strategy to follow because being popular in the short term doesn’t necessarily mean it’s going to be the most fruitful picking in the market. Sticking to longer picks diversifies portfolios and helps give you more of a balanced offering.