Plummeting oil prices and a crashing stock market are fueling ongoing concern about the pace of global economic growth.
“It’s the worst start of the year for the stock market,” said Mark Bass, a financial planner from Pennington, Bass & Associates in Lubbock. “These periods of time are very unsettling.”
But is there any reason to worry just yet about a possible recession? Bass says not necessarily.
“We’re a good ways from it,” said Bass. “You know, there’s a recession that can take place in the economy, and you can still have bear market in the stock market. We’re officially not there yet, a bear market’s a decrease of 20% and so we’re not at that point but we’re in the double digits. So it makes people nervous.”
And while the stock market rout may sound as if it may place your 401k in jeopardy, this is also something Bass advises to not panic about.
“If you’re working and you have a 401k at work where you have a contribution to a 401k every pay period it’s wonderful for that. I mean would you rather buy something at full price or buy it on sale. So, stocks are on sale and they may go further on sale which means they could decrease further, but for people that purchase on a systematic basis it can be a very advantageous period of time.”
Those taking some of the hardest blows, however, are here in West Texas: the oil business.
While customers are able to now enjoy low prices at the pump, those who work directly in the industry are becoming subject to job cuts. And it doesn’t stop there: it greatly affects the cities’ economies and business structure as a whole.
“That’s a double-edged sword,” Bass said. “It’s great at the gas pump when you fill up, it’s terrific. It affects oil-based economies particuarly here in Texas and in West Texas whether that’s in Synder, Post, or Midland where you have people being laid off. So, that is a direct impact and it’s not just people in the oil industry.”
By the end of the day Wednesday, the Dow closed with a loss of “only” 247 points.
