Billionaire Advises Investors to Ride Out COVID-19 Market Volatility

With Joe Biden’s big Super Tuesday wins, the stock market rebounded today. However, experts are skeptical and expect the market to remain volatile for some time to come.

Marketwatch spoke with billionaire investor Howard Marks about the big swings in the market and the co-chairman of Oaktree Capital gave some familiar advice: “nobody knows.”

So, what does that really mean to those of us who are trying to protect nest egg investments in the market? It means anything could happen. For those with nerves of steel, Marks says that cautious buying is not a bad idea. After all, if we learned anything at all from Tom Green it was “buy low, sell high.”

Of course, being conservative with investments is a wise move right now. If you buy low and the stocks you pick move up, you’ll be happy you got in low. On the other hand, the stocks you pick now could just keep going in a steep and swift decline, so again, the word of the day should be conservative.

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Anyone investing in the stock market right now has to understand that no financial adviser can predict the future and investments come with a high risk, especially now with the stress of COVID-19 (coronavirus) spooking investors.

Marks explained that previous major stressors in the market made for a white knuckle ride, but when the eventual recoveries happened, those who held on reveled in significant gains. He seems to see the coronavirus-induced market events in the same light.

While Marks can’t guarantee a strong recovery – as nobody can – his experience and gut are telling him to hang in there. Others predict the burst of the market bubble and financial devastation, but there is reason to hold out hope.

In short, yes there are huge risks in the market and investors must have nerves of steel to ride it out. Historically, the stock market has recovered from seemingly crushing disasters, notably the Asian Contagion of 1997 and the financial crisis of 2008-2009.