The Coronavirus and your investments: what to do about your 401K

Local News

BATON ROUGE, LA (NBC 33/FOX 44)

A lot of people are worried about their investments right now. The Dow Jones Industrial Average plunged by another thousand points on the morning of Friday, February 28, after the biggest drop ever for the Blue Chip Index a day earlier.

This week’s plunge marks the seventh day of a sell off that seems to be fuelled by the Coronavirus. But local financial expert Chad Olivier says what we’re seeing is nothing unsual.

“It’s making it seem bigger than it is,” Olivier said of the recent plunge. ” You’re gonna have corrections and most of the time there’s gonna be something fuelling the correction. And that’s what this coronavirus is doing.”

Many are asking whether their investments are safe, will their 401-K’s survive the Coronavirus.

Olivier says he’s telling clients to look at the percentage they’re losing, not the dollar amount.

“If you look at the dollar amount, that tends to scare you a little bit,” he stressed. “So you look at the percentage. If the market’s down ten percent and you’re down 4 or five percent, the account’s doing what it’s supposed to be doing.”

Olivier’s advice: don’t panic.

“It’s like the market has a little bit of the flu right now where it gets hit extremely hard in the beginning.”

Olivier says the market WILL recover. It’ll just take some time.

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