Stock market's rough ride has locals nervous

The Dow Jones industrial average closed Monday at 11,350, marking the worst June for the market since the Great Depression of the 1930’s and it’s lowest point since Sept. 2006.

In addition to the current condition of the market, the price of oil hit another record high at mid-day Monday at over $143 per barrel, before slipping a bit to close at $140 per barrel — for comparison, at this time last year, the price of oil was just over $59 per barrel.

According to a couple of local money experts, effects of the market highs and lows reach into every corner of the country — including Roosevelt and Curry Counties.

“It particularly hurts the people that are getting ready for retirement, or the ones that are expecting their investment portfolio to be there for the rest of their life,” Portales National Bank president David Stone said.

Stone cited the current energy crisis, including the record prices of gasoline and crude oil as one reason why the market has gone south.

Bob Waters. a financial advisor for Edward Jones in Clovis, says that during troubling economic times,  it’s more important to make sure your investment portfolio is as solid and diversified as possible.

“Anyone that’s invested for any period of time knows that we occasionally go through these kinds of markets. It’s unpleasant, but it’s part of the way the market works and many times it creates opportunities,” Waters said. “The majority of our customers are well diversified in investing for the long term and these occasional tough times in the markets are something that is always of concern,  but it doesn’t necessarily change the market strategy.”

But even as gasoline and oil prices set record high’s nearly every day, while the market continues to sink, Waters doesn’t see many of his customers in a panic.

“Many times customers just want to have their concerns addressed and make sure that their investments are still appropriate for their circumstances,” Waters said.

Stone isn’t as optimistic.

“The scary thing about it is I’m 67-years-old, and I have never ever been afraid for our country before now. We have problems that are out of our control, because environmentalists have kept us from drilling for oil where we know oil is. We’ve gotten dependent upon people that don’t like us,” Stone said. “It’s terrifying for me.”

Stone also points to the sub-prime mortgage situation across the country.

“(Some people) bought houses bigger than they could afford,” Stone said. “And those people and the companies that lent them the money are going to get bailed out by the federal government. And who’s going to have to pay for it? The American people.”

“It’s been years since I’ve even bought a stock,” Stone said. “Because I don’t feel comfortable listening to what somebody else says is a good deal.”