Good afternoon everyone,
The consumer protection arm of the Delaware Attorney’s Office sent out a timely reminder this week about the scam artists we always see at times like these.
I’m referring to the coronavirus and its effects on financial markets. (See story below).
As this column is being written, stock indices posted another drop as signs point to more cases in New York City from the “community” spread of the virus. This followed a recent roller-coaster performance on the street.
We do know that the risk of contracting the virus remains low. We also know that the virus is inflicting damage on travel-related industries, especially those with a global presence. For example, shares of American Airlines, a major employer in our region, are down 30 percent from their highs.
So far, we have seen few signs of panic selling, but scam artists know human behavior and find ways to prey on the most vulnerable.
One telltale pitch noted by the AG’s office is the promise of guaranteed returns.
There are no guarantees unless you put money in savings accounts that earn a pittance. Any panic moves will lock in losses.
The best advice is to stay in touch with your broker. Once things settle down, a conversation on one’s appetite for risk is a good idea.
Businesses with retirement plans should stay in touch with their representatives and pass along updates.
Keep in mind that even with the current downturn, the market has not given up most of the gains of recent years.
In other words, take a deep breath and if you have confidence in your strategy, spend a little less time logging on to your online portfolio and don’t pay attention to the noise that we see at times like these.
Enjoy this nice, spring-like day.
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