What financial advisers say to do as the Iran war rattles investments : NPR
NPR • • general
Key Points:
- Since the U.S. and Israel began strikes against Iran, oil prices have risen while stock markets have declined due to uncertainty about the war's impact on the economy, with the Dow Jones down about 9% since February.
- Financial advisers recommend that investors with 10 or more years before needing funds should avoid reacting to market dips and consider buying stocks at a discount, acknowledging markets can worsen before improving.
- Those a few years from retirement or needing funds should rebalance portfolios toward safer assets like U.S. Treasury bonds and diversify internationally to reduce risk and prepare for future market volatility.
- Investors needing to withdraw funds now should sell from their best-performing accounts to minimize losses, avoid selling worst-performing assets to allow recovery, and limit withdrawals to essential amounts only.
- Experts advise maintaining rational decision-making during market downturns, including cutting expenses or delaying retirement if necessary, to avoid selling investments during periods of widespread market sell-offs.
