Plummeting stocks & coronavirus: Financial expert advises people to wait it out | KOB 4

Plummeting stocks & coronavirus: Financial expert advises people to wait it out

Nathan O'Neal
Created: March 10, 2020 12:11 AM

ALBUQUERQUE, N.M.— The Dow Jones had its worst point drop ever—more than 2,000 points—amid a day of turmoil on the stock market.

“Nervousness and fear —I think the market right now is uncertain. It went down immediately at opening at 9:30 this morning,” said UNM Associate Professor of Finance Reilly White.

White points to two factors: growing concerns over the coronavirus and a price war between Saudi Arabia and Russia driving down oil prices.

“It's going to be months, many months before we figure out exactly how big these effects will be in coronavirus or oil that are affecting the market right now,” White said.

White suggested a few things for the average New Mexican to consider.

“There are actually three things that individuals have to do here in New Mexico— and I really mean this—don't panic, don't make decisions based only off that emotion, that fear, because that's what's happening in the stock markets,” White said.

The second tip White offered was to be vigilant and stay informed. Thirdly, it all comes down to patience.

“Just be rational and logical in your decision making and the third is to remember this too shall pass—that this uncertainty will get better,” White said. “In the long run this will not be the end of the world and that this is going to be something that will be very difficult over the next year or so and it's going to cause a lot of stock market fluctuations, a lot of questions about people's 401K and their retirement plans, but as long as you focus on that long term, on those long term benefits, this shouldn't affect those things.”

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