Why it may be a good time to invest in stock market

TAMPA, Fla. - Invasion and inflation. Is it a portfolio killer, or a purchase opportunity? Financial advisor Kristina Rodriguez says it’s the latter.

"I believe the markets will be volatile for the rest of the year, probably, but it’s still a good time to get into the market," explained Rodriguez, with Invst, an independent registered investment advisory firm.

She says it’s a good time because a down market means low prices.

"I look at it as a time for a great sale," she said.

After the Russian invasion of Ukraine last Thursday, the market saw an initial drop. Since then, it has bounced back and is currently trading above where it was before the conflict started.

If you’re able to get in on a "great sale," she says it’s a way to get ahead of inflation.

"So think about this: if you’re putting money into your checking account, or under the mattress or the safe in your house, you’re losing money. Because with Inflation right now is about at 7, or 7 ½ percent, you want to use the market to hedge against inflation."

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Even at three percent annual inflation, in 20 years you would need $181 to match what $100 buys today, according to an inflation calculator.

Those heading into retirement, Rodriguez says, might feel the pressure.

"Especially with inflation right now, that’s putting a lot of pressure on bonds," she said. "And if you’re about to retire, you’re more conservative, so you definitely want to talk to your financial advisor to see if there’s anything you should be doing differently right now."

If you’re just starting out – she says index funds or ETFs are a safe bet.

"A lot of different stocks and bonds that are all mixed together or following a certain index of the market – like if its energy or health care or finances," she said. 

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And above all else, think about your investments logically – not emotionally.

"If you make an emotional decision and you take money out, and then the market shoots back up, you lost all of that gain. So this is the time to stay firm with your goals and your strategies."

And if you do have an advisor, don’t be afraid to reach out.