SAN ANTONIO – Editor’s note: This story is published through a partnership between the San Antonio Business Journal and KSAT.
Investors are nervous about what comes next amid the spread of the coronavirus and the market’s response.
Tom Stringfellow, president and chief investment officer for San Antonio-based Frost Investment Advisors, a subsidiary of Cullen/Frost Bankers Inc., said the massive sell-off in response to the coronavirus and oil prices — the fastest drop in market valuations since the Depression — increased the anxiety and that taking action in a panic is rarely the right way to manage a portfolio.
“How long it will take for investors to feel confidence in the markets again remains uncertain,” he said. “Until we see some success in containment efforts, we believe emotional trading will be likely to continue. In this environment, we need to reach out to our clients, address their fears, respond to their concerns and put the current volatility into context with their longer-term goals."
Even after the markets rebounded Friday and the Federal Reserve slashed interest rates to almost zero Sunday, stocks opened Monday down more than 10%.