Are we in a Coronavirus-fueled recession? Local expert weighs in
Warwick financial planner on managing money amid COVID-19
WARWICK, R.I. (WLNE) — Big tumbles on Wall Street, but also some big gains, are reflecting both the Coronavirus crisis in this country and the government’s actions to prop up the economy.
“Investors around the country and around the world are worried about exactly how destructive this shutdown will be. Yet they are comforted in some way by the fact that the United States is pulling out all the stops and doing what they can to help save businesses,” said Christina Gatteri, a certified financial planner at Innovative Planning Partners in Warwick, who spoke with us by video chat.
But the overall downward trend has led some to worry about their investments.
“For younger investors or anyone with a 401k, I’d say leave it be, because when the market rebounds the rebound is going to be significant,” said Gatteri.
But Gatteri says there are some scenarios where taking money out now might make sense.
“If you are just too nervous to stomach the ride and you don’t know what to do, you can sell your investments and turn it to cash. I would not take 100 percent of a portfolio and turn it to cash, but find a number that’s comfortable for you so you can sleep at night,” said Gatteri.
“We do not know if we are in recession until we see two consecutive quarters of negative growth, negative GDP growth, but it would be hard to believe that we’re not in some sort of global recession right now given the dropoffs that we’ve seen in the market,” said Gatteri.
This may be a good time to chat with an expert about your investments. Right now many financial planners including Gatteri are booking appointments by video conference.
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