Buy, sell or hold? How to navigate the coronavirus-infected stock market

ABS-CBN News

Posted at Apr 02 2020 10:56 AM | Updated as of Apr 02 2020 11:04 AM

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MANILA -- Wild swings in stock prices here and abroad due to the coronavirus pandemic show the nature of the equities market: it's volatile, an analyst said Thursday.

How investors should respond will depend on their tolerance for risk, the size of their emergency fund, even their age, said Marvin Fausto, president and CIO of COL Investment Management.

Fausto gave some tips on how to manage stock portfolios during the COVID-19 crisis, which formed many countries, including the Philippines, to lock down millions.

BUY STOCKS IF...

"Wealth accumulators" in their 30s and 40s have many years left in terms of investing and can take advantage of low prices, provided they have emergency funds, Fausto said.

"If you have a long way to go, it may good for them to buy because they can accommodate that kind of volatility," he said.

SELL STOCKS IF...

Retired persons who rely on fixed income can reduce their exposure to risky assets such as stocks, Fausto said.

These types of investors can "sell and be comfortable with what you have," he said.

OR, JUST HOLD

The equities market is inherently volatile and at the mercy of global events such as COVID-19. As with most cycles, financial markets recover, Fausto said.

"Don't look with too much concern with how the market moves. That's how it moves, it goes up and down," he said.