PHILADELPHIA (CBS) — The coronavirus is causing stocks to nosedive. The Dow Jones plummeted 1,190 points — the worst single-day drop in history. Even though the coronavirus outbreak has spooked the markets, financial strategist Camari Ellis says there’s no reason to panic.
Ellis, the founder of Philly Tax Team, says the market usually bounces back over the course of several months.
“Anytime you’re talking about your money, you should be concerned, but I don’t think it’s a reason to panic,” Ellis said. “This is a rare occasion. This doesn’t happen too often, but usually when you see these sharp declines, the market tends to bounce back in a six- to eight-month period.”
Ellis says people need to “stay the course” while the market is in flux.
“Stay the course, breathe, stay calm and wait to get more information,” Ellis explained. “We saw in 2008 when the market crashed during the Great Recession, people sold, they went to cash, they never came back and the market has been on a run since 2009 when it bounced back.”
Ellis, however, says those who are approaching retirement or are retired should double-check their accounts.
“They should be making sure they don’t have extra exposure to the stock market,” Ellis explained, adding that millennials and younger people should still keep investing.
Despite the markets tanking, Ellis says now is the time to buy stocks.
“Some of the big stocks, like Apple and Microsoft, are down. It’s a great time to buy, everything’s on sale.”