The Meaning Behind the Numbers
As the Dow drops and oil prices rise, expert advises calm.
June 27, 2008 — -- Despite the summer heat, it was a chilling day on Wall Street Thursday as the Dow Jones Industrial Average dropped nearly 360 points, making this the worst June for the stock market since the Great Depression.
Investors lost an estimated $300 billion.
But as for the individual investor, Alexa Glick, host of "Money for Breakfast" and "Opening Bell," advised that falling stock prices will not bring the sky with them.
"Listen, the worst thing you can do on a morning like this is panic," Glick said in an interview with "Good Morning America." "Talk to a financial adviser or just wait. Take a deep breath."
Rather than make drastic investment decisions, Glick suggests that investors keep recent trends in mind and re-evaluate how they handle their personal budget.
"The reality is that gasoline prices will go higher, absolutely," Glick said. "So be prepared for it. I don't see any easing in the inflation prices of food or gasoline in the near term."
As Glick explained, the market suffered from a "one-two punch" of financial crises.
"First of all, oil prices went up," she said. "In addition, there is rampant talk right now on Wall Street about further write-downs due to mortgage losses in the housing market."
After hitting $140 per barrel Thursday, oil prices settled at $139.65 yesterday. OPEC officials have predicted that by the end of the year, oil could be going for $180 per barrel.
With some speculation that gas will go for as much as $7 per gallon by 2010, auto makers are feeling the effects, and none moreso than General Motors, whose stocks dipped to a 53-year low.
Adding to economic woes and investor fright is the crisis in the housing market, which has caused an estimated 16 percent drop in home prices nationally in the past year.
Alice Gomstyn contributed to this report.
