Dow Drops Below 13,000 (CBS)
CBS News
Transcript
[Music] the Blue Chips lost the battle for 13,000 for the first time since April the Dow dipped below that psychologically important Milestone but veteran Traders say in the end it's just a number I think 13,000 might be a short-term Psy psychological point for people to hold on to but you can't deny it's been quite a journey it took the Dow just 12 weeks to make the jump from 13,000 in April to 14,000 in July but in a month's time the Dow has given back those thousand points and then some as the subprime mortgage mess and the credit crunch begin to put the breaks on the economy every bull market since 1970 has seen at least one 10 plus perc correction within it we have not had one uh since this bull market was acknowledged in May of 2003 so I think we're overdue there was some encouraging new news inflation appears to be under wraps giving the Federal Reserve some room to cut interest rates they're looking for the FED to begin lowering the short-term or fed funds rate in September rather than waiting until the first half of 2008 experts say investors need to see some stability in the markets before they'll jump back in So stocks may still have further to fall I don't think you want to try to pick a bottom we might have we might be in it we don't know it but to try to pick it I think is is sometimes Fool's play the best advice experts say sit tight until wall Street's Rocky ride finds calmer ground Alexis christopherus CBS News the New York Stock Exchange