FRESNO, Calif. (KFSN) — A preliminary survey from the University of Michigan shows consumer sentiment has dropped to its lowest level in three years. The report indicates a 6% decline from October, with many Americans expressing fears that a potential government shutdown could impact both the broader economy and their personal finances.

As investors navigate the uncertainty, financial experts are urging caution and long-term thinking.

“One of the best ways to build resilience in your portfolio is to make sure your mix of stocks and bonds is dialed in appropriately,” said Tina Mistry, CEO and senior financial advisor at Portfolio Advisors.

Mistry emphasized that investing is a long-term strategy and advised against making panic-driven decisions during market downturns.

“People need to ride through short-term volatility,” she said. “If they keep the long-term in mind, they’ll likely be okay after 10, 20, or 30 years.”

She warned that cashing out investments during a downturn is often the worst move an investor can make.

“If you have a knee-jerk reaction to get out, you probably need to dial back the risk,” Mistry said.

Before making any financial moves, Mistry recommends speaking with a trusted advisor.

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“Talk to them about what you’re feeling,” she said. “Sometimes venting is helpful, and they can help you avoid costly mistakes.”

She also stressed the importance of maintaining a financial safety net, whether through savings or within an investment portfolio.

“A good rule of thumb is having about three to six months of daily spending set aside,” Mistry said.

Despite the current market turbulence, Mistry said downturns can present opportunities.

“We’re buying on sale – everyone loves a sale,” she said. “Just as quickly as markets go down, they can go back up. Investing cash when markets are down is like adding rocket fuel to your portfolio.”

Mistry added if you’re tempted to hop on a trendy investment, do your homework first. It’s best to go into those opportunities well-informed.

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