After a significant sell-off in the market on Thursday, top financial advisors did not urge clients to adjust their investment portfolios, despite retail investors selling large quantities of individual stocks on that day.
In a quick survey conducted on Thursday by CNBC regarding its advisors “Financial Advisor 100” and “Financial Advisor Council”, over three-quarters of the respondents stated that investors should first check whether their asset allocation meets their goals, or continue to adhere to their original strategy. This online survey was conducted from 2:30 PM to 6:00 PM on Thursday Eastern Time, sent to 121 institutions, and a total of 38 replied.
On Thursday, as tech stocks tumbled, retail investors sold off individual stocks, and the Dow Jones also gave back some of the gains made after the mid-term elections. The S&P 500 index recorded its largest single-day decline since April 2025 on Thursday. Analysts linked this selling activity to concerns that data center construction may slow down after the Democrats achieved a major victory in the elections.
The Nasdaq Composite Index tumbled 5.5%, closing more than 10% below its recent high, entering what Wall Street refers to as a "correction" zone. The benchmark S&P 500 Index fell 4.4%, and the Dow Jones Industrial Average lost over 1,800 points, with a decline of 3.4%.
When to persevere and not budge
However, in response to the CNBC survey, financial advisors overwhelmingly stated that they did not recommend clients to adjust their investment portfolios. A more general message conveyed by several advisors in interviews was: check whether your investment portfolio still matches your goals, but do not let sudden market fluctuations make decisions for you.
The Director of Investment Strategy at Reston, Virginia Burney Wealth Management, Andy Pratt, stated that for investors who continue to make contributions to their 401(k) accounts, a market downturn means they will be able to purchase investments at lower prices in the coming period.
Pratt says, "If you have a 401(k), the funds will be continuously invested on a bi-weekly, monthly basis, or whatever your pay cycle may be, so you can average out the costs through regular investments. This way, when there is a sell-off in the market, you are actually entering at a better position."
Pratt indicates that a well-designed portfolio may not necessarily require adjustment during periods of decline. Parsons Capital Management Director, General Manager, President, and CEO of Providence, Rhode Island John Mullen summarized it as follows: "Stick to the original plan, while keeping an eye out for buying opportunities."
When should a re-evaluation be conducted?
However, financial advisors suggest that if investors become panicked, it may be a sign that they need to re-evaluate whether their current investments still align with their goals and risk tolerance.
Jacksonville, Florida Life Planning Partners. The founder, registered financial planner, and doctor Carolyn McClanahan stated that she would recommend this strategy to her clients, and that this method "works very well."
McClanahan says that investors should adhere to an investment policy that reflects their own needs and "filter out the rest of the noise."
Dallas Beaird Harris Wealth Management, a registered financial planner, wealth manager, and chief investment officer Tra Sullivan, stated that historically, the U.S. stock market tends to rise within 12 months after mid-term elections. However, he believes that this pattern should only be used as a reference background, rather than a guarantee.
He also added that when the market falls, "there is always a recovery, and in many cases, more often than we expect," but past rebounds do not guarantee that there will be a recovery in the future.
In pre-market trading on Friday, NASDAQ futures rebounded, and chip stocks also saw a recovery. The selling pressure from the previous day had pushed the NASDAQ index into a correction zone.
However, Sullivan indicates that if the weak market persists, he will bring the discussion back to the clients' financial planning.
For long-term investors, Dan Moisand, a registered financial planner and financial consultant in Orlando, Florida, suggests that it may be more important to maintain resilience rather than trying to accurately predict every market fluctuation.
He said, "Facts have proven that maintaining resilience brings greater benefits than trying to time one's moves flexibly."
Correction:Earlier versions of this article incorrectly stated the qualifications of John Mullen. He is the Managing Director, President, and Chief Executive Officer of Parsons Capital Management.
