Financial advisor Mark Henry from Alloy Wealth Management urges investors not to panic amid market volatility.
CHARLOTTE, N.C. — A Charlotte-area financial advisor is urging everyday investors not to panic amid wild swings in the stock market, warning that rapid market volatility — known as “whipsawing” — may be the new normal for the foreseeable future.
Mark Henry, CEO of Alloy Wealth Management, said the term describes markets that can shift dramatically from one day to the next.
“Literally something happens on Friday and it’s completely different on Monday,” Henry said.
His primary message to investors: don’t react.
Henry recalled watching his own father lose nearly 45% of his investable net worth during the 1987 “Black Monday” market crash — and then compound the damage by selling before the rebound.
“Reaction is not the right thing,” he said.
Henry said the right strategy depends heavily on a person’s age and risk tolerance. For younger investors in their 30s, volatile markets can actually be an opportunity, allowing them to take advantage of dollar-cost averaging — the practice of investing fixed amounts regularly regardless of market conditions — at a pace never seen before.
“This Friday your paycheck goes into the 401k and you might be buying high,” he said. “But then next Friday you might be buying low. You’re buying it on sale.”
For those nearing or already in retirement, Henry recommends keeping Wall Street investments completely separate from the income needed for daily living — whether that comes from Social Security, pensions, or other sources.
“You have to let the markets do what they do,” he said, “and that means you can’t be relying on it for retirement coming up in three or four years, or for daily withdrawals.”
Henry said he does not expect the turbulence to be temporary, citing a fundamentally changed global landscape.
“I think we’re going to see market volatility the rest of our lives,” he said. “It’s going to become the new normal.”
He acknowledged the psychological toll the swings can take, even on young investors, noting his own 30-year-old son has found the ups and downs discouraging. His advice: stop checking.
“You’re not touching it today,” Henry said. “You really have to develop that mental fortitude.”