Financial adviser says not to watch the Dow too closely

Markets fluctuate wildly short term. Long-term, diversified investors can weather storm.

It was over 20,000. Now it’s back down again. 

But try not to watch the Dow average too closely, says La Crosse financial analyst Jim Naleid.

“That’s somewhat meaningless for a long-term investor,” he said Monday morning on WIZM. “It gives me some sense of where the market’s capabilities are.”

Naleid says while the Dow and all markets can fluctuate wildly over the short term, a long-term investor with a well-diversified portfolio should be able to weather any financial storm.

He adds that any market, including the Dow, can make big swings over the short term in either direction.

“Just like we’re talking about if it crosses 20,500, it could very easily break down and fall below (18,500),” Naleid explained. “If it does that, it could go even lower, but I’m not going to base my portfolio decisions on that happening.”