Local financial advisor George Mortimer said people should ride out the lows of the stock market, even though fear is guiding some people in their investments.
“Let’s try not to be afraid,” he said.
Mortimer is a longtime financial expert with Edward Jones and is the regular Tuesday guest on “People in the Know” with Gary Stelly on KOGT’s Morning Show.
Mortimer talked about the steep drops in the stock market and how the coronavirus pandemic is affecting finances.
“For the most part, it’s the unknown news that is affecting the market,” he said.
He recommended people not concentrate on current value of a stock or mutual fund, but realize they still own the shares in a company.
Through the years, the U.S. stock market has had major drops and crashes. But the market will go up again over time.
“In America to date, we’ve never failed to get back (stock value) and go higher,” he said.
Oil prices are also affecting the drop in the market, he said. The U.S. has been producing large amounts of oil, particularly with the shale oil. Mortimer said Saudi Arabia and Russia have been producing large amounts, glutting the market and making prices low.
The big drops have come because Saudi Arabia and Russia joined together and lowered prices per barrel. That gives the world energy market a surplus of oil and making the product cheap.
Crude oil on Tuesday ended at $26.83 a barrel after another drop. Mortimer said U.S. shale oil costs $39-40 to produce. The selling price now cannot match the production costs and the shale fields are laying off workers.
Mortimer stressed that investors should not panic, especially those in Orange County. “We’ve been through tough times before,” he said, pointing out that since 2005, the county has suffered through major hurricane damage. People joined together and rebuilt.
“We’ve got that spirit,” he said.