The Federal Reserve has lowered its projection for economic growth this year, spurring fears that the economy could continue to weaken despite January's interest rate cuts, Wednesday, Feb. 20, 2008. (AP / CBS)
It was a topsy, turvy Monday on Wall Street. However, as the financial world scrambles to recover, Texas remains in good shape.
That's largely because of a thriving oil and gas industry and healthy employment rates. However, experts warn that Texas is not immune to the effects of the souring economy and typically lags national trends by several months.
Other states are facing deficits. They're having to propose cuts to government health care to children, disabled and the elderly. But lawmakers in Texas so far expect to have enough money when they convene in January to write a state budget without such cuts.
A healthy oil industry in Texas means stout employment rates. It also helps the state because proceeds from oil and gas production taxes are divvied up among public education and the state's
so-called Rainy Day Fund. Several billion dollars are expected to be sitting in the fund by the time lawmakers meet next January.
Further padding the next two-year budget, lawmakers expect to have more than $8 billion left over from the last spending cycle. But, things can still change.
One local financial expert tells us to ignore your emotions when it comes to investing.
"Probably the most difficult thing to do is you have to resist the urge to follow your emotions when you invest, because if you do fear will cause you to buy and will cause you to sell at the bottom," LPL Financial Stockbroker Steve Aldrich said. "Greed will cause you to buy at the top and you need to do exactly the opposite of that."
Aldrich says this is the time to invest. He says the market will eventually turn around.