Bend advisor talks of how to ride market decline

The stock market is starting 2016 out horribly. The Dow Jones industrial average was down more than 500 points at one point Wednesday. Bend financial advisor Ed Wettig said lower oil prices are taking a toll on the economy and scaring some into pulling their money from the stock market.

“Oil is probably looked at at the No. 1 cause behind this market decline,” Wettig said.

Traditionally, economists believe the more oil prices drop, the more money consumers have to spend — but that only goes so far.

Wettig explained how that theory works when oil prices are $50 to $80 a barrel, but when they drop below $50, it can hurt the economy and oil companies. The drop in prices have cost hundred of thousands of jobs and have put many energy companies out of business.

“Two years ago this month, oil was $100 a barrel, one year ago it was $50 a barrel — and today its $26,”Wettig said.

The huge price drop has caused some investors to worry and sell their stocks. There is a way to benefit from the down economy, Wettig said: It’s a golden opportunity for young adults investing in 401(K)s.

“It’s a blessing when the stock market goes down, because all you want to do is buy shares, the more shares you can acquire,” said Wettig.

On the other hand, he said, the downturn could hurt those planning to retire soon. To prevent further losses, he recommended staying the course until the market recovers.

If you have any question or concerns about the market, Wettig recommends speaking with your financial advisor to make sure your financial goals haven’t changed. If your goals haven’t changed, he said, there is no reason to sell your stocks.