A financial planner says people shouldn’t panic over the market drop on Monday.


A senior financial planner with Lewis and Jones Group in Killarney says people shouldn’t panic because this is normally how markets do behave.

“We’ve come through a period of time where we’ve had unprecedented growth especially in the U-S where the market went through the most number of days with less than a 2 per cent or 3 per cent drop in almost history” said David Jones.

He added anything that continuously goes up has to take a breather and the market drop is healthy because it was probably needed. “At some point valuations get so stretched that they are ridiculous. This is just part of normal market activity.”

Jones says indications are this was likely more of a correction because the economy seems to be in good shape. He also said his phones haven’t been ringing off the hook. “The clients should hopefully be invested in a mic of assets that this really shouldn’t have an impact. Most people if they check their portfolios they will be pleasantly surprised to see they haven’t followed the market.”

Jones said one of the people in his office ran a report and the total assets they manage for clients were down less than one per cent.

“What we need to remember is the market is still worth what it was six weeks ago so its not like we erased a bunch of gains” said Jones.