Local Investors' Confidence Takes A Hit

By Chris Wright, News On 6

TULSA, OK -- The Wall Street shake-up is also shaking the confidence of Green Country investors. Local financial advisors say worried clients tied up the phone lines on Monday.

Despite the troubles on Wall Street, experts believe Oklahoma's economy is in good shape. They say our banks avoided those dangerous sub-prime mortgage loans and the energy industry is thriving. So they hope that, for now, we will be able to weather this storm.

The images of Lehman Brothers employees filing out of the investment bank Monday were unsettling for investors across the country.

"In the short run, adjustments to the financial markets can be painful, both for people concerned about their investments, and for employees of the affected firms," said President George W. Bush.

That concern extended to the Sooner State.

Financial advisor Dennis Davis says he fielded calls from nervous investors, but he tried to calm their fears.

"The United States is a very powerful country with a very powerful economy. We've gone through downturns in the market in our economy before," said ING Financial Partners Dennis Davis.

Davis believes Oklahoma should be better positioned to survive this crisis than other states. Still, he points out that a strong local economy cannot protect people who have money invested in stocks.

"It is time to review your portfolio, and see if it matches your circumstances now," said Davis.

Davis recommends that to reduce your risk, you need to make sure your portfolio is diversified. He says too many people put all their eggs in one basket.

He also recommends examining your cash reserves, as well as your debt levels. Davis advocates paying off as much debt as you can now, and not adding to it. He says while this economic crisis may be a difficult one, there will eventually be silver lining for investors.

"Start preparing for it to come out the other side because there will be good bargains to find at this point," said Davis.

Oklahoma's banking commissioner Mick Thompson says bank failures are expected in several states, but he does not believe it will happen here.

He also says that Lehman's bankruptcy should not have an effect on the state pension system.