Our good friend and partner Leonard Raskin of Raskin Global joined Nestor to discuss the financial ramifications of the current coronavirus pandemic. As someone who has been advising his customers and making decisions in the stock market for the better part of three decades, Raskin has been busy easing concerns over the past few weeks as the market has crashed at a historic pace.
“It’s been faster down than was the stock market crash of 1929,” Raskin said. “We’ve never seen it drop this far this fast. Right now, nobody knows when it’s going to let up. The big concern is, obviously, with everything going on with the coronavirus, there is nowhere to put your money. There’s nothing to do with it. Everybody’s scared.”
With businesses being ordered to close to different extents throughout the country, it is clear why the market has followed its recent past.
“When people don’t buy things, and people don’t sell things, public companies go down in value, the stock market goes down in value.”
However, for people who are considering selling your stocks, Leonard has some very key and important advice for you. And he is urging you to stay patient and not panic.
“From a market standpoint, it’s never a good time to sell stocks into a 30 percent down DOW and S&P performance,” Raskin said. What you have to realize as an investor is that this money should have been positioned in proper allocations between equities, fixed incomes, and cash. The only thing you should be doing is rebalancing your allocation, which means, if you were for instance half in equities and half in fixed incomes, surely your equities are not still half of your portfolio. It’s now time to move your fixed income and cash into stocks and be the beneficiary of a recovery, because this too shall pass, our economy is vibrant, the world will come back to a more normal track, and when that happens, you will be the beneficiary of buying low, which is what we teach people. And I’ve taught people for 33 years.”
While Raskin admittedly does not know exactly when the market will start going back up, he is extremely confident that continuing to invest and stay patient is the prudent financial move.
“It may be an opportunity short-term. It is certainly an opportunity long-term,” Raskin said. “In the short term, could it go down another 5%, 10%, 20% from here? Absolutely. The next 10%-20% is completely unpredictable. Nobody knows. But I can tell you the next 100% is up. Now I can’t tell you the next 100% is next year. But the next 100% we won’t see in our lifetime. And if we don’t, god forbid, your money is not something you’ll care about one bit.”
Raskin Global is a fee based firm of financial planners and investment advisory representatives. They advise their customers on every single aspect of their financial life. Raskin Global wants to be your long-term advisor, or “general manager,” and show you the path to both grow your money and protect the financial priorities that are most important to you. We trust Leonard Raskin and the folks at Raskin Global to advise us on all things financial related here at WNST and Baltimore Positive, and we encourage all of you to do the same!
To hear Leonard Raskin’s full conversation with Nestor, listen here: