Just moments after the morning bell rang on Wall Street Tuesday the Dow Jones Industrial began to drop.
"What's happening right now is that the market before the mortgage rate crisis started was priced at a certain level, and now all of them have to be re-priced," Investment Advisor Robert Simpton said. "Consequently all the different stocks have to be re-priced."
While Texas has faired well in real estate amidst the housing crisis, nationwide it's been much different. Now the numbers are telling the story.
What's cause of concern for some, others say is probably just a trend.
"Anytime there is a period of time that the market is closed, whether it be a holiday or a weekend, the amount of concern can kind of build up to a point where it overflows into other people's markets," Denise Fries with Fries Financial Services said.
"The international markets as badly as they regard the U.S. depend now heavily on the U.S. for its sales, and when there looms a recession or some sort of slow down in the U.S that affects their economies greatly, they consequently start selling off because they have to re-price all of their assets," Simpton said.
Financial experts say speculation and fear are always going to drive the market down, but say the market isn't all doom and gloom. Certain buying opportunities now exist that weren't available before.
"Just like we see sales at the mall and sales at the grocery store, the stock market is on sale now and many many people will take an opportunity to make those purchases right now," Fries said.
Officials say stocks, mutual funds, and making a 2007 or 2008 IRA contribution are among the best investment opportunities. It is those purchases that will in turn drive the market back up.
The Dow which fell more than 400 points at the beginning of Tuesday was able to rebound slightly closing at a 128 point drop.
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