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Latin American couple talking to a financial advisor about an investment – home finances concepts<\/p>\n
Andresr | E+ | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n
Top financial advisors aren’t urging clients to change their portfolios after Thursday’s sharp market sell-off,<\/a> even as retail investors were heavy sellers of individual stocks<\/a>.<\/p>\n In a Thursday flash poll of advisors from CNBC’s Financial Advisor 100<\/a> and Financial Advisor Council<\/a>, more than three-quarters of respondents said investors’ first steps should be to check their allocation against their goals or stay the course. The online poll, conducted from 2:30 p.m. to 6 p.m. ET on Thursday, was sent to 121 firms and 38 responded.\u00a0<\/p>\n Retail investors sold individual stocks Thursday as technology stocks tumbled, <\/a>and the Dow gave back its post-midterm election gains. The S&P 500 suffered its worst one-day drop since April 2025 on Thursday. Analysts linked the sell-off to fears of a data center construction slowdown following major Democratic election wins.<\/p>\n The Nasdaq Composite tumbled 5.5%, closing more than 10% below its most recent high and putting it in what Wall Street regards as a correction. The broad-market S&P 500 lost 4.4%, while the Dow fell more than 1,800 points, or 3.4%.<\/p>\n<\/div>\n Yet, financial advisors who answered the CNBC poll overwhelmingly responded that they are not recommending changes to their clients’ portfolios. The broader message from interviews with several advisors: review whether your portfolio still matches your goals, but don’t let a sudden market move make the decision for you.<\/p>\n For investors who continue contributing to a 401(k), a market decline can mean buying investments at lower prices over time, said Andy Pratt, director of investment strategy at Burney Wealth Management<\/a> in Reston, Virginia.<\/p>\n “If you have a 401(k), money is being allocated there biweekly, monthly, you know, whatever your pay period is, and so you’re able to dollar-cost average in,” Pratt said. “So when the market does sell off, you’re entering at a much better spot.”<\/p>\n Pratt said a well-designed portfolio may not need changes during a downturn. John Mullen, managing director, president and CEO of Parsons Capital Management<\/a> in Providence, Rhode Island, put it this way: “Stay the course with an eye on buying.”\u00a0\u00a0<\/p>\n<\/div>\n Yet, if investors are panicking, that could be a sign to reassess whether their investments still fit their goals and risk tolerance, financial advisors say.<\/p>\n Carolyn McClanahan<\/a>, a certified financial planner, physician and founder of Life Planning Partners in Jacksonville, Florida, says she tells clients to follow this strategy, which “works beautifully.”\u00a0<\/p>\n McClanahan said investors should stick to an investment policy that reflects their needs and “tune out the rest of the noise.”\u00a0<\/p>\n Tra Sullivan, a certified financial planner, wealth manager, and chief investment officer at Dallas-based Beaird Harris Wealth Management<\/a>, said historically the U.S. stock market has often risen in the 12 months after midterm elections, but he views that pattern as context rather than a promise.\u00a0<\/p>\n He added that when markets fall, “there’s always a recovery, and a lot of times, in most cases, more quickly than we anticipate”, although past rebounds don’t guarantee future recoveries. <\/p>\n Nasdaq futures rebounded<\/a> in pre-market trading on Friday with a bounce in chip stocks following a sell-off<\/a> that sent the Nasdaq into correction territory the day before.<\/p>\n Still, if market weakness continues, Sullivan said he brings the discussion back to a client’s financial plan.\u00a0<\/p>\n For long-term investors, Dan Moisand, a CFP and financial advisor at Orlando, Florida-based Moisand Fitzgerald Tamayo<\/a>, said resilience can matter more than trying to time each market swing.\u00a0<\/p>\n “Being resilient has proven to be more profitable than trying to be nimble,” he said.<\/p>\n Correction: An earlier version of this article misstated John Mullen’s certifications. He is managing director, president and CEO of Parsons Capital Management.<\/em><\/p>\n SIGN UP:<\/strong>\u00a0<\/em>Money 101\u00a0<\/em><\/a>is an 8-week learning course on financial freedom, delivered weekly to your inbox. Sign up\u00a0<\/em>here.\u00a0<\/em><\/a>It is also available in\u00a0<\/em>Spanish.<\/em><\/a><\/p>\n<\/div>\n<\/div>\n\nWhen to hold tight<\/h2>\n
When to reassess <\/h2>\n
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