Investors divesting at near-record pace; advisors say that doesn’t mean you should too

view original post

BISMARCK, N.D. (KFYR) – You may have seen reports of investors pulling out of the stock market in droves this summer. Steven Richard with Lux Wealth Advisors confirmed that’s the case, but he said that doesn’t mean you should divest too.

The summer is typically a time when the stock market remains relatively stable, according to CNN. However, the market is reportedly shrinking as more investors divest at a near-record pace. Richard said the reasoning behind the pullback is based on a couple of unique factors.

“Generally, when you see folks pulling out of the market, it’s related to fear in some way. With a high inflation environment and an interest rate environment that’s high, that puts some downward pressure on the stock market,” said Richard. 

Richard said when people see this happening, the knee-jerk reaction might be to follow suit. But he said it all boils down to when you need to access the funds you have invested. He said if you’re looking to start a retirement fund, it’s never a bad time to invest.