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What Financial Advisors Are Telling Investors About the Market's Meltdown

Fresh off Wall Street's worst week in four years -- one that saw the Dow Jones industrial average lose 10 percent of its value and the Standard & Poor's 500 index slip below the magical 2,000 barrier -- financial advisors have two words of advice for gun-shy investors.

Don't panic.

"We're starting to get some calls, as should be expected," says Erik Jensen, president and founder of Jensen Wealth Advisors in Palm Desert, California, and a registered principal with LPL Financial. "We empathize with them; nobody likes seeing drops like last week. However, we recommend they keep a long-term perspective, understanding that corrections are the norm, not a calamity."

Sure, last week may have felt like a calamity if you were watching your portfolio shrink by the hour. But there were tell-tale signs -- after riding an extraordinary bullish market since 2009, Wall Street had been essentially trading sideways until this month. Then the market's softening became a full-blown meltdown Thursday and Friday.

Wall Street's darling stocks -- the tech sector -- were among the hardest hit. Netflix (NFLX) lost nearly 16 percent; Apple (AAPL) and Facebook (FB) were both down nearly 9 percent and Microsoft Corp. (MSFT) fell 7.7 percent.

Banking stocks were also horrid, as Bank of America Corp. (BAC) fell 9 percent, JP Morgan Chase & Co. (JPM) fell 6.3 percent and Wells Fargo and Co. (WFC) -- arguably the best banking stock of 2015 -- dropped nearly 6 percent for the week.

Meanwhile, crude oil fell below $40 per barrel for the first time since 2009, and the CBOE Volatility Index (VIX) -- the so-called "fear index" -- jumped more than 45 percent on Friday and more than 90 percent for the week.

"While investors should avoid panicking over short-term movements in the value of...