A Financial Planner’s Advice for Surviving the Wall Street Rollercoaster

SACRAMENTO -- The world has been watching the wild ride on Wall Street since Friday.

In downtown Sacramento, the president of Towerpoint Wealth, Joseph Eschleman, has spent the past few days navigating his clients through the historic drops in the Dow Jones and volatility in the market.

"As human beings, we're driven by fear and by greed, and it looked like fear took hold over the past couple days," Eschleman said.

Eschleman says it all started in response to a strong jobs report Friday, showing U.S. wages were going up. It was good news, but Wall Street reacted with fears about inflation.

"Anytime you start to use the 'i' word, that is inflation, investors start to get concerned," Eschleman said.

Then the market took a nosedive. Eschleman says the people who should worry most are those getting ready for retirement and "short-term" investors looking to make quick money in stocks.

"I think if you have the mentality of being a trader and you are simply just trying to make money then yes, I think the stock market, in general, is similar to going to the casino," he said. "Who knows what happens on a short-term basis? Nobody does."

After close to eight years of steady growth, Eschleman says the recent volatility in the markets is worrisome.

"Could it go further? I think that's the major concern because none of us have a crystal ball. However, I think this is why people should focus on owning investments that pay interests in dividend," Eschleman said.