From WBRZ 2
ANNOUNCER: Now WBRZ News 2 at 4:00.
ANCHOR BRITTANY WEISS: Good afternoon. I’m Brittany Weiss.
ANCHOR: Now more about the stock market. It’s none too pretty for 2016. And for some more perspective on what it means, here is financial expert Jerry Linebaugh. So welcome back, Jerry. You were stuck in that traffic.
JERRY LINEBAUGH, JLINEFINANCIAL: Yes. It was not too bad, but I’m finally here.
ANCHOR: Well, you’re here now. So what does all this mean? It’s not looking good.
LINEBAUGH: Okay, so once again, for us to really be in a bear market
– and we’ve discussed this before – the market would have to close, as far as the S&P, would have to close down below 1708. Today we lost a lot, especially in the Dow. The S&P is down to 1880. But, you know, we’ve said this before, it kind of depends on what your age group is. So, where we’re at with this is think of it like this in the retail sector. Let’s talk about if you were going to buy coffee or orange juice. And, you know, you walk in the store and it was 100 percent overpriced. You’d just go buy it somewhere else.
LINEBAUGH: Well, if you went everywhere and that kind of became the price – right? You knew in the back of your mind this wasn’t a good deal, but if nowhere there was a better deal, it’s what you’d do. What’s happening – is some people are saying, you know what? I’ve just got to give in. I’ve got to get out while the getting’s good. Some people are doing that. And when they do that, it opens the door and this is – it could be the next big sell-off. It’s anybody’s guess. Now, another pressure is China is using a lot less energy now. Iran’s about to come on the scene, starting to sell their products in the open market. You know, who knows. If I could predict exactly when the next big dip is it, I’d be the next trillionaire. Right?
LINEBAUGH: So what can people do? If you’ve got more than 15 years to retirement, you might think about the same thing that some of the folks that are older and closer to retirement. You know, we insure everything, don’t we? Insure our health, we insure our cars, our businesses. Maybe it’s time to start talking to an advisor or your advisor to see if they could give you something that would insure against loss. There are products that do that. And so if this is the big one, maybe you can sleep better at night and won’t have to ride this thing all the way down.
ANCHOR: Okay. So what about here? What are people worried about?
LINEBAUGH: Well, jobs, you know. Right now the biggest sector for the highest paying jobs would be something like Dow, Exxon. These are energy producers. And they’re faced with a supply problem. Like I said, China’s using less, Iran’s about to come on pumping more. So we’ve already lost 4,000 to 6,000 direct jobs and started in Houma and Lafayette and it’s starting to spread up here. Well, we’ve lost a lot more than that because all these support jobs. So, there’s just really no way to predict where the bottom is on this, but it’s all connected. So if this is the next big one, you might want to think about protecting versus staying in and riding it all the way to the bottom.
ANCHOR: Okay, wow. Jerry Linebaugh, thank you so much for coming
in today. We appreciate it. You’re watching WBRZ News 2 at 4:00.
Jerry Linebaugh is the founder of JLine Financial in Denham Springs, LA. He has more than 20 years of experience serving those who want to build and implement a secure retirement strategy.
For more information, please visit www.jlinefinancial.com.