Raymond James CEO Paul Reilly told FOX Business that investors shouldn’t panic over volatility that’s sweeping through U.S. financial markets.
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“Think about your long-term plan. Don’t react to the volatility short-term in the market and look at your particular situation,” he said during an interview on “Countdown to the Closing Bell with Liz Claman” on Thursday.
The CBOE Volatility Index, Wall Street’s “fear gauge,” has jumped about 87 percent since the close of the market on Sept. 28, 2018.
“It’s not a time to panic and just get out of the market,” Reilly said.
U.S. stocks surged Thursday, a day after a steep selloff, with the Dow Jones Industrial Average rallying 400 points on moderately heavier volume.
“It’s not a time to panic and just get out of the market.”
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NYSE composite volume was running about 17 percent above the one-month average as of Thursday afternoon, according to FOX Business’ Charlie Brady.
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Reilly said the financial markets have been spooked on questions about interest rates, a U.S. trade war with China and where the U.S. economy is headed.
“I think this volatility as you’ve seen it go down probably more than it should have even if it’s a correction and then this spike like today is going to be more than normal until people feel that a lot of these issues are behind them,” he said.
Reilly said investors often make emotional decisions during times of volatility.
“Even if it’s a [market] correction and you are in a position where you are still long-term oriented, you ride through it,” he said.
Raymond James manages $754 billion in clients’ assets.
