It was another rollercoaster day on Wall Street. Stocks rallied this afternoon after being down in the morning. The S&P 500 closed up 1.76%. The Dow Jones Industrial Average ended the day higher by 1.17%. The Nasdaq Composite rose 2.48%.

The banking industry meltdown continues to be the driving force on the markets this week. ReJoyce Financial Investment Advisor Mike Markiewicz says right now, investors are making decisions based on emotions. 

“Whenever we have these adjustments, corrections — whatever you want to call them — there’s always two parts to what can happen. One is the fundamentals, what is actually driving this up or down. Then you have the psychological impact, which sometimes can be more than the fundamental impact.” 

The U.S. government already confirmed all funds deposited inside any of the failed banks are available to be withdrawn — even if the deposits are more than the FDIC limit of $250,000. 

The problem started when Silicon Valley Bank didn’t have enough cash to hand out when people asked for their money back. Since then, problems have been found at just a handful of other banks. 

“We don’t know how big this is going to get yet. But in the short term, it doesn’t seem to be spreading much more than what it already has,” said Markiewicz. 

While the current story is drawing headlines, a bank failure isn’t as uncommon as it sounds. Since 2009, more than 500 banks have closed their doors. 

Investors who have a diversified portfolio with a variety of assets may see a short-term hit to their portfolios as the stock market reacts to the headlines. But having a well-rounded portfolio is key. “Equities are still good,” said Markiewicz. “We still recommend we stay in the equity market. We are leaning out of the financial sector, at this time. But it doesn’t mean we couldn’t get back into them in six months or later this year.” 

Anyone who wants to discuss their portfolio can call a financial advisor at ReJoyce Financial and schedule a review. The team is available to offer their knowledge and recommendations.