“Yesterday was supposed to be a vacation day,” said Antwone Harris, a certified financial planner in the Washington, D.C., area who spent most of the day calming clients. He said none of his clients had veered from their financial plan as the stock market has tanked.
What should advisors and investors do in the current tumultuous market environment?
The panelists said they should seek quality bonds, such as strong investment-grade corporate bonds, and should be careful about pushing too much for yield. Advisors and investors should also avoid stocks as bond substitutes––i.e., income stocks. And they should stay away from high-yield, which Jones sees as risky.
“Yesterday made me very happy that I hold bonds,” Jones said, “and I hope it helped our clients understand why they own bonds in their portfolio.”