Wall Street is in a bear market for the first time in 11 years, but there may be a few ways to take advantage of the market’s struggles.
Derrick Kinney, an Arlington-based financial advisor has advice for anyone of working age when it comes to their finances.
“This is a scary time for a lot of people, especially in this volatile market,” said Derrick Kinney, an Arlington-based financial advisor who shared advice for all age groups on how to outlast the volatile market.
"What I am telling clients right now is that if they are young, I'd say 20 to 30 years old, this could be a fantastic buying opportunity, but you want to be selective right now. There are so many stocks that are down, not all of them will come back up,” Kinney said. "What I would suggest that you do is follow the consumer. Given where things have changed and where people are spending money right now. That's where you want to put your money with bigger, blue-chip companies having a lot to do with technology and telecommuting. I think all of those might be some good opportunities."
People in their 40s and 50s who have their eye on retirement, but still have a decade or two to go before they need their 401K, should also focus on the blue-chip stocks right now, according to Kinney.
“The ones that seem to be more consistent and don't tend to be as volatile. But the key there is to maximize your 401k. Slow and steady wins the race,” Kinney said.
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There is also a space in this volatile market for people who have already retired.
"Those people retired and aren’t really making income, how do they produce more consistent revenue? Wall Street is a place to look, but look for those blue-chip, dividend-paying areas that tend to not fluctuate when the market zigzags like it has done recently," Kinney said.
There is a silver lining here, especially for people who want to refinance their homes or are in the market to buy a home.
“For many people, this would be a great time to refinance. But here’s the key, what are you doing with the savings? If you spend it, you are not pushing yourself forward financially. You may want to think about using the money you save for refinancing and use it toward your house payment to pay it off quicker to put yourself in a better position,” Kinney said.
Kinney said this also goes for people who want to buy a new home, but keep one thing in mind.
“Rates are low right now. It is a great time to buy, but make sure you actually find your dream home. You can lock in that rate for a long term stay, not just something you are thinking about being in for five years, just to move,” Kinney said.
He said there is a bottom line for all consumers right now.
"As low as it is. White knuckle it. Hold on. Double buckle that seat belt. Ride this out. And if you can, add money to the market right now where you can buy while its low so you can reap the benefits when it eventually does come back," Kinney said.