Coronavirus and the economy: Senior investors should take cautious approach, Jacksonville market analyst says

JACKSONVILLE, Fla. — Fears over the global impact of the Coronavirus moved the Dow deeper into the red Friday, making this week the worst market drop since the 2008 recession.

The stock market was hammered again just one day after the worst one-day decline in our nation’s history.

Stock market trader and University of North Florida professor Hank Swiencinski said the economy is strong, and you shouldn’t be worried.

“What we’re having right now is a panic in the stock market; the economy is doing OK,” said Swiencinski, who has more than 25 years of experience trading markets.

“If I would go out and ask 10 people on the streets if they want to buy, they would say you’re nuts,” he said.

The Dow closed Thursday with a loss of more than 1,191 points, closing at 25,767.

“The first thing that it has impacted is airline stocks, or one of my favorite stocks, Royal Caribbean,” Swiencinski said.

He said the Dow has now lost close to 4,000 points since it started to decline earlier this month.

“You want to buy when there is blood on the streets; that’s a Wall Street act. You want to sell when everything is perfect. Three or four weeks ago, it couldn’t get any better,” Swiencinski added.

He said people shouldn’t be concerned for their 401(k)s.

If you have one and are approaching retirement, he suggests riding this one out.

He said the worst thing you can do is sell your investments, especially if you’re not close to retiring.

“The thing I would point out to your senior investors right now is to take a very cautious approach,” Swiencinski said.

While he agrees that the economy is strong, the global economy may be a little different.

“It’s a short-term thing and people need to understand that and then make their investments on the basis of that,” Swiencinski said.

He said right now, the trouble is knowing how long this downturn will stick around.

He said if you have any questions or concerns about your investments, you should contact your financial adviser.

Swiencinski’s class The Professor’s 1-Minute Guide to Stock Management will be offered at Florida State College at Jacksonville’s Deerwood Center. Those who are interested in registering can send an email to workforceop@fscj.edu or call (904) 357-8910. Classes begin April 1.

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Swiencinski went LIVE on the Action News Jax Facebook page to answer some questions and show the timing of the waves in the market. Watch those videos below:

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