Nervous investors need to decide if ‘going to cash’ is best choice

Resist the urge to compare today’s market volatility to the broad downturn that kicked off a decade ago.

“Back in 2008, you had banks failing, major institutions with lines out the door and people worried about deposits,” said Cox. “Those are very legitimate reasons to want to sell your assets and sit in cash, but those conditions aren’t present today.”

Nevertheless, now might be a good time to do a gut check of your risk tolerance and your goals before you flee to cash.

“What’s the likelihood that you will need your whole portfolio in 10 years?” asked Brandt. “Why do we need growth over time?

“You should have a whole spectrum of risk in your portfolio, from international stocks and small cap growth funds to cash and treasuries,” he said.

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