What Happens If I Lose My Job?

Presented by the Hardee Investment Group and RBC Wealth Management –

Last month’s article, No More Pain at the Pump, validated the investment theme of investing in energy users, not producers. Unfortunately, we who live here in Texas will feel the brunt of lower energy prices either directly or indirectly. Energy drives our local economies in a number of ways. Energy company jobs pay well and have good benefits. As companies grow, they hire more. More jobs mean more people buying homes and shopping at local businesses. Banks lend money to real estate developers to buy land and build. The equation is simple: More Jobs = More People = More Money.

The oil business has always been a boom to bust cycle, and this time appears no different. What is different is how quickly energy companies are responding to this bust. Crisis management is in place as companies are quick to freeze salaries, cut budgets and announce layoffs. This ripple effect will spread through local economies and may affect home values and growth in our community over the coming year.

One of the mistakes I see investors make is they often invest in the same industry they work in because they know and understand it. The problem is that when you lose your job, it usually reflects the fact that your industry is having hard times. That usually means that stocks in that industry are down in price at the very time you need money. A case in point are the two indices representing oil and gas (XOP) and oil service companies (OIH) are both down 41 percent from their summer highs. When you lose your job, you may have to liquidate assets to pay bills and many times you get hurt twice.

Review your investments, and see if you have this potential problem. These cycles strike swiftly and always seem to last longer and go deeper than we expect. Let us help you prepare for both the good and the not so good times ahead. Call us at 713-853-0879 or visit us anytime online at www.HardeeInvestmentGroup.com.


This article provided by H. H. “Will” Hardee, AWM of the Hardee Investment Group and a Financial Advisor and Senior Vice President at RBC Wealth Management in Houston, and was prepared by or in cooperation with RBC Wealth Management. The information included in this article is not intended to be used as the primary basis for making investment decisions nor should it be construed as a recommendation to buy or sell any specific security. RBC Wealth Management does not endorse this organization or publication. Consult your investment professional for additional information and guidance. RBC Wealth Management does not provide tax or legal advice. RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC.