Market sell-off hits hard: Advisors say 'stay the course with an eye on buying'

Top financial advisors aren't urging clients to change their portfolios after Thursday's sharp market sell-off, even as retail investors were heavy sellers of individual stocks. In a Thursday flash poll of advisors from CNBC's Financial Advisor 100 and Financial Advisor Council, more than three-quarters of respondents said investors' first steps should be to check their allocation against their goals or stay the course. The online poll, conducted from 2:30 p.m. to 6 p.m. ET on Thursday, was sent to 121 firms and 38 responded. Retail investors sold individual stocks Thursday as technology stocks tumbled, and the Dow gave back its post-midterm election gains. The S&P 500 suffered its worst one-day drop since April 2025 on Thursday. Analysts linked the sell-off to fears of a data center construction slowdown following major Democratic election wins. The Nasdaq Composite tumbled 5.5%, closing more than 10% below its most recent high and putting it in what Wall Street regards as a correction. The broad-market S&P 500 lost 4.4%, while the Dow fell more than 1,800 points, or 3.4%. When to hold tight Yet, financial advisors who answered the CNBC poll overwhelmingly responded that they are not recommending changes to their clients' portfolios. The broader message from interviews with several advisors: review whether your portfolio still matches your goals, but don't let a sudden market move make the decision for you. For investors who continue contributing to a 401(k), a market decline can mean buying investments at lower prices over time, said Andy Pratt, director of investment strategy at Burney Wealth Management in Reston, Virginia. "If you have a 401(k), money is being allocated there biweekly, monthly, you know, whatever your pay period is, and so you're able to dollar-cost average in," Pratt said. "So when the market does sell off, you're entering at a much better spot." Pratt said a well-designed portfolio may not need changes during a downturn. Certified financial planner John Mullen, president and CEO of Parsons Capital Management in Providence, Rhode Island, put it this way: "Stay the course with an eye on buying." When to reassess Yet, if investors are panicking, that could be a sign to reassess whether their investments still fit their goals and risk tolerance, financial advisors say. Carolyn McClanahan, a CFP, physician and founder of Life Planning Partners in Jacksonville, Florida, says she tells clients to follow this strategy, which "works beautifully." McClanahan said investors should stick to an investment policy that reflects their needs and "tune out the rest of the noise." Tra Sullivan, a CFP, wealth manager, and chief investment officer at Dallas-based Beaird Harris Wealth Management, said historically the U.S. stock market has often risen in the 12 months after midterm elections, but he views that pattern as context rather than a promise. He added that when markets fall, "there's always a recovery, and a lot of times, in most cases, more quickly than we anticipate", although past rebounds don't guarantee future recoveries. Nasdaq futures rebounded in pre-market trading on Friday with a bounce in chip stocks following a sell-off that sent the Nasdaq into correction territory the day before. Still, if market weakness continues, Sullivan said he brings the discussion back to a client's financial plan. For long-term investors, Dan Moisand, a CFP and financial advisor at Orlando, Florida-based Moisand Fitzgerald Tamayo, said resilience can matter more than trying to time each market swing. "Being resilient has proven to be more profitable than trying to be nimble," he said. Stephanie Dhue contributed reporting to this article. SIGN UP: Money 101 is an 8-week learning course on financial freedom, delivered weekly to your inbox. Sign up here. It is also available in Spanish.