“Anyone who looks at their portfolio and isn’t happy with the performance, this is your chance,” Smith says. “We’re identifying additional candidates to sell, but the last thing you want to do is join the party and sell on the drop.”
Kapyrin, at RegentAtlantic, says conditions are still right for investors to buy into the market.
“I think investors should buy into this decline, as the economic and corporate fundamentals are still very sound,” Kapyrin says. “This may be an especially good opportunity to rebalance in emerging markets.”
Diane Pearson, an advisor with Legend Financial Financial Advisor Inc. in Pittsburgh agrees now is a time to buy and rebalance.
“Thiings are going to remain choppy for awhile but a diversified portfolio will be okay. For the rest of the year, portfolios should be hedged against international investments,” she says.
Mark Kemp of Kemp Harvest Financial in Harleysville, Pa., says he has been getting more panicked calls from other advisors asking what he is telling clients, than he has from clients. Clients will call when they get their quarterly statements and see they are not immune to the downturn. That is when he reassure them they are okay.
“If they have a rainy day fund and a source of retirement income or are far enough away from retirement to have some time, now is a perfect time to buy,” says Kemp.
And during the bumpy ride, advisors can serve as a Zen influence on investors, Hensley says.
“There are clients out there that will have these fears but won't even pick up the phone to ask you about them,” Hensley says. “It is important as an advisor to pick up the phone and speak to this fear.”