Brokers: Sure, you’re scared, but it’s time to invest

Yes, the Dow Jones took a big tumble Monday as Congress turned down a multibillion-dollar bailout plan for the nation’s finance system. Yes, investments everywhere took a beating as the market plummeted. Yes, it was the biggest one-day drop in history.

No, it’s not time to crawl on the ledge and take the plunge, too.

What next? The Atlanta Journal-Constitution contacted a handful of investment advisers, asking:

Is this a good time to sell?

“Selling is unintelligent,” said Derek Imes of Principia Investment Advisors. Based in Athens, Imes said he has counseled his clients to hang on to their holdings.

“Don’t freak out,” he said. “This is pretty extreme, but it’s not the end of the world.”

“Don’t react — act,” said Mike Cavanaugh, a senior partner at Capital Investment Advisors Inc. of Atlanta, who counsels listeners on “Money Matters,” on WSB-AM (750) radio. “There’s a fire sale on right now” in the market.

“We’re using a market like this to invest rather than sit, frozen, on the sidelines,” added Brian Ranck, a certified financial planner and director of the wealth-management firm BNY Mellon.

“Diversify, diversify, diversify,” said Ken Holley, chief investment officer at Atlanta Life Investment Advisors. If you spread your investments around, he said, there is less chance your entire portfolio will take a hit when the market stumbles — as it will.

“This is a correction,” said David Fisher, a founding partner and registered investment adviser with Signature FD LLC. The 11-year-old firm changed its name from F&D Advisors LLC., in July.

Translation: The Dow’s precipitous drop is the market’s way of achieving equilibrium. What happened Monday is hardly different than the market scares of 1987, when the Dow tanked 500 points.

“Screw up your courage,” said Mike Hines, president of Atlanta’s Consolidated Planning Corp. A longtime adviser, he admitted feeling shaky Monday as the bailout package collapsed.

“My emotional side of my brain told me it was very fearful” to be in the market, he said. “My logical side of my brain told me it was a good time to invest.”