Dave Ramsey Gives Crucial Financial Advice for Coronavirus Chaos: 'Don't Get Off a Roller Coaster in the Middle of the Ride'
Financial expert Dave Ramsey told investors that they should not “get off a roller coaster in the middle of the ride” as they watch the stock markets fall after the World Health Organization declared the coronavirus a pandemic Wednesday.
“I think you do not play the stock market on the short term, it will give you a heart attack” the host of “The Dave Ramsey Show” said Thursday on the Fox News program “Fox & Friends.”
“This is investing, and you don’t lose money and you don’t get off a roller coaster in the middle of the ride.”
The global stock market fluctuated Wednesday and seemed to be headed for bear market Thursday, CNN reported.
The S&P 500 opened down 6.5 percent on Thursday. If it closes at 20 percent from its all-time high, it would close in a bear market and end the longest bull-market run in U.S. history. The Dow also fell 6.9 percent and the Nasdaq fell 6.8 percent.
However, Ramsey said this market turbulence “will be a complete memory” in the fall of this year.
“I sat in here in 2008 yelling over and over again, ‘Please don’t take your money out of the market. It will be OK,'” he said.
“The Dow went down to 6,300 from 13,000. It went in half. Not just down a little bit — it’s just down a little bit comparatively. And then it went back up to 30,000.”
Financial expert Rachel Cruze, Ramsey’s daughter, added that if you have any concerns, it is a good idea to talk to your financial adviser.
“Financial advisers, they’re in this all day every day, so talk to them, get their opinion, it’s always the long game,” she said. “Never take your money out of the retirement accounts. Leave it in.”
Ramsey said there are financial opportunities in this bear market economy, such as refinancing a home.
“If you’ve got one of those stupid adjustable rates or a balloon mortgage or even, could you believe we would say like 5 or 6 percent interest is high? That’s a high-interest mortgage. You need to refinance that baby,” he said.
Cruze added that she tells people to “control what you can control.”
“You can’t control the global economy so do what you can for your home,” she said. “Things like living on a budget, getting out of debt, saving up an emergency fund, having cash in the bank if emergencies happen. Those kinds of things set you up for success in your household.”
In his address Wednesday night, President Donald Trump announced measures to try to combat the spreading of the virus including suspending travel between the United States and most European countries.
“This is not a financial crisis,” he said. “This just a temporary moment of time that we will overcome together as a nation and as a world.”
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