Market drops may feel alarming — but financial advisers say staying calm and focused is the key.

The recent rollercoaster on Wall Street has many investors anxious, but history shows this isn’t out of the ordinary. Big market drops happen — and rebounding from them is part of the long-term investment journey.

The S&P 500 has dropped over 16% since peaking in February, largely due to rising uncertainty around President Trump’s tariffs. Harsh trade measures recently announced have rattled investor confidence, reminding many of the early days of the 2020 COVID crash.

While some hoped tariffs were just a bargaining chip, the fear now is that they might stick — and that’s shaken both businesses and households trying to plan for the future.

Market dips of 10% or more happen about once a year, and while they’re tough to stomach, they’re part of a normal market cycle. Some say the market was overheating anyway, driven by just a few Big Tech companies — the so-called “Magnificent Seven” — that carried much of the S&P 500’s gains last year.

It’s tempting, especially when losses start piling up. But pulling out of the market can lock in losses permanently — and miss out on the recovery that often follows.
Historically, the market has bounced back from every major downturn — including the Great Depression, the dot-com crash, and COVID-19.

Experts say unless you need the money within the next few years, it’s best to stay put.

“No one can time the market,” says WalletHub CEO Odysseas Papadimitriou. “Trying to guess the perfect moment to buy or sell is a losing game.”

Possibly — but not out of panic.
Many experts recommend revisiting your diversification strategy. If most of your investments are tied to U.S. Big Tech, for example, you may be more exposed than you think.

“A diversified strategy can’t prevent the punches, but it can help soften the blows,” says Brian Jacobsen of Annex Wealth Management.

Financial advisers suggest looking at more resilient sectors like healthcare, utilities, and consumer staples, which tend to perform more steadily during economic uncertainty.

Younger investors may be facing their first major downturn — but they also have a huge advantage: time.
With decades ahead, young investors can ride out volatility and reap long-term rewards.

“Now is not the time to make emotional decisions,” says Bankrate’s Stephen Kates. “Re-anchor to your long-term goals and stay focused.”

Older investors don’t have as much time to recover from losses — but even in retirement, your money might need to last 30 years or more.
Experts suggest limiting withdrawals during downturns and discussing strategy with your financial adviser.

“You may want to slow down spending temporarily and ramp it back up once markets recover,” advises Neel Mukherjee, CIO at TIAA Wealth Management.

The honest answer? No one knows.
Markets are unpredictable — and while this can feel unsettling, trying to time your way around it often does more harm than good.

So take a deep breath, stay diversified, and don’t let fear make the decisions. The market has weathered many storms — and if history is any guide, it will rise again.

Source: AP News – Think twice before bailing out of the stock market, financial advisers say

The post Don’t Panic: Why Selling Stocks Now Could Cost You Later appeared first on Journos News - Breaking News, World News, Top Stories, Todays Headlines and Flash Reports.

Warren Buffett, in his annual letter to shareholders on Saturday, reflected on Berkshire Hathaway’s remarkable journey over the past 60 years. Since taking over a struggling New England textile company in 1965, Buffett has transformed it into a massive conglomerate with holdings spanning insurance, railroads, utilities, and retail. While celebrating Berkshire’s successes, he also acknowledged making mistakes along the way—though he provided few specific examples.

Greg Abel: The Future of Berkshire

Buffett reassured shareholders that his chosen successor, Greg Abel, is fully prepared to take the helm when the time comes. Highlighting Abel’s ability to act decisively on investment opportunities, Buffett wrote:

“We are impartial in our choice of equity vehicles, investing in either variety based upon where we can best deploy your (and my family’s) savings. Often, nothing looks compelling; very infrequently, we find ourselves knee-deep in opportunities. Greg has vividly shown his ability to act at such times.”

Berkshire’s Growing Cash Reserves

With Berkshire now holding a staggering $334.2 billion in cash—nearly double the $167.6 billion it held a year ago—Abel will have plenty of resources to deploy. The increase comes after Berkshire sold much of its Apple and Bank of America stock while continuing to generate significant cash flow from its diverse businesses, including:

• Geico Insurance
• BNSF Railroad
• Utility Companies
• Manufacturers and Retailers, such as Dairy Queen and See’s Candies

Recent Investments: Utilities, Truck Stops, and Japan

While Buffett has struggled to find major acquisitions in recent years, he did make several key moves in 2023:

• $3.9 billion to acquire full ownership of Berkshire’s utility business.
• $2.6 billion to purchase the remaining shares of the Pilot truck stop chain.
• Increased investment in five major Japanese conglomerates, bringing Berkshire’s six-year total investment in Japan to $13.8 billion, now valued at $23.5 billion.

No Plans for a Dividend

Despite its immense cash reserves, Buffett reaffirmed that Berkshire has no plans to offer a dividend. The company continues to prioritize reinvesting profits into new opportunities rather than returning cash to shareholders.

A Shorter Shareholder Meeting & Buffett’s Reflections

For the first time, Buffett announced that the annual shareholder meeting in May will be shorter, running from 8 a.m. to 1 p.m.—several hours less than usual. At 94 years old, Buffett also acknowledged using a cane to prevent falls, saying, “I am now officially in the age of precaution.”

Unlike the company’s 50th anniversary letter, where he and longtime partner Charlie Munger (who passed away in 2023) reflected deeply on Berkshire’s history, Buffett kept this year’s message relatively forward-looking.

From Humble Beginnings to Historic Success

Buffett recalled that when he took over in 1965, Berkshire paid zero corporate income tax, a sign of its struggling financial state. Fast forward to 2023, and Berkshire paid $26.8 billion in corporate taxes—the largest amount ever paid by a U.S. company, surpassing even trillion-dollar tech giants.

Berkshire’s stock tells a similar story of extraordinary growth:

• Buffett began buying Berkshire shares in 1962 for $7.60 each.
• Today, Class A shares trade at $718,750, making them the most expensive publicly traded stock in the world.
• The company also offers Class B shares at a more accessible $478.74.

A Special Anniversary Celebration

To commemorate Berkshire’s 60th anniversary, Buffett promised shareholders the opportunity to purchase a special edition book filled with untold stories and lessons from the company’s journey.

As Buffett celebrates six decades of success, his message to shareholders remains clear: Berkshire Hathaway is stronger than ever, and its future under Greg Abel looks just as promising.

Source

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