Americans are responding to the coronavirus pandemic with bad investment strategies, poor career choices and wrong financial decisions, all of which are avoidable, according to a report released this week by Ric Edelman, founder of Edelman Financial Engines.
“Americans without a sound investment strategy often fall victim to behavioral finance biases that cause them to make bad decisions,” Edelman said in a statement.
In the report, he notes that during the 2007–2009 credit crisis, millions of investors lost their jobs, and it took a decade for the unemployment rate to return to pre-2008 levels. Millions more sold their investments during the lowest periods of that era, sustaining massive losses from which many never recovered.
“COVID-19’s impact on the economy has been and will continue to be unprecedented,” Edelman said. “It is therefore essential that you consider the many ways it may alter your life and be willing to adjust your investment and personal finance strategies accordingly.”
The report examines the virus’s effect on the economy and a wide variety of factors that affect Americans’ financial and personal lives.
Edelman argues that the U.S. economy will likely not fully recover from the once-in-100-years financial crisis and grinding unemployment levels until a vaccine is in wide distribution.