NBC CT Interviews Rosa Chen on Market Conditions

NBC Connecticut interviewed BFS director of research and portfolio manager Rosa Chen, CFA, CPA to talk about how investors can approach the current environment. 

 

Watch the video on the NBC Connecticut website or below, followed by a full transcript.

Amber Diaz: Stocks closed lower today, as the Israel and Iran conflict rages on for a fifth day, the Dow Jones closing down nearly 300 points lower. The S&P 500 shed .84 percent. During a time when the stock market is not very predictable, some investors might be worried about their portfolios, understandably so. Experts say you have to stay true to yourself and have a framework on how you plan on investing your money.

 

Rosa Chen: …so a lot goes into that with my investment objectives. What do I want to do with this money? Age, risk tolerance — all of that is something that should be discussed in full, and you come up with a plan and a framework.

 

Diaz: Rosa Chen is the Director of Research and a portfolio manager investment firm Bradley, Foster & Sargent in Hartford. She says when the markets are in the same situation as today, you will want to go back to your framework. 

 

Chen: We have a lot of clients, when they onboard, we’ll do a financial plan for them and discuss that so that when we get phone calls from clients during these times, we say, ‘OK, let’s go back to our plan.’

 

Diaz: Chen says a good plan entails knowing what you want to do with your money and knowing how long you have until you hit your objectives.

 

Chen: So if I’m 30, I got a different timeline. And if I’m 65, is my wealth going to build over time, or am I drawing down my wealth because I’m retired? And then, of course, your risk tolerance. Can I sleep at night? If you can’t sleep at night, then it’s not the right risk tolerance for you.

 

Diaz: Chen recommends you stay flexible in your beliefs. Don’t get stuck on one theme or idea like AI companies. She also recommends preserving capital to make sure investments outpace inflation. She also says risk management is important. Don’t just look at the upside. Know how much you could lose.

 

Chen: Risk management is a big deal. It’s always a big deal. It just seemed like less of a big deal a couple years ago.

 

Diaz: Chen says, if you are able, you should start investing now, because the most powerful asset you have is time.