In times of market downturns, many of the stocks that take a beating will eventually rebound.
Others, not so much.
For investors who have a big portion of their assets in one particular stock, the current drubbing may serve as a reminder that diversification matters. It might also be time to make sure you still believe in the company’s future financial success.
“I don’t think you should bail on a stock because it’s going down,” said certified financial planner Kashif Ahmed, president of American Private Wealth in Bedford, Massachusetts. “You should figure out why it’s down.
“The underlying financials could be sound but it’s being hammered by sentiment.”
Investment portfolio
Rafe Swan | Getty Images
As the U.S. economy reels from the effects of the coronavirus pandemic, the major stock indexes have nosedived and continued volatility is anticipated. The S&P 500 index, considered a broad measure of how the nation’s companies are faring, closed Thursday at 2,526, down 25.4% from its high of…
