April 14, 2000
It doesn't take an MBA to know that today's big drop in stocks is not good.
But, what do today's figures and a series of down days on Wall Street really mean?
News Specialist Scott Light has the story.
what a ride! All 30 stocks that make up the Dow Jones Industrials finished down today.
Analysts say this is a needed correction for both the Dow and the Nasdaq.
On top of all that, we also heard today about the cost of living in Utah and yes, you're paying more money to live day-in day-out.
The price of gas is not only taking a bigger chunk out of your pocketbook, it's actually shifting the cost of living in the Wasatch Front.
Take a look at these categories:
Housing, health care, utilities, education and clothing.
In all, eight of 10 cost of living factors remained stable during the month of March.
But the cost of living rose a full percentage point.
How? Food was one factor but the biggest one was what it costs to drive around town.
Dr. Kelly Matthews/First Security Bank: "ALMOST THE ENTIRE AMOUNT OF THAT INCREASE WAS ONCE AGAIN IN TRANSPORTATION."
It's believed transporation even contributed to the higher food prices.
So when will we catch a break?
First Security predicts by Labor Day, a decrease of more than 10-cents a gallon.
Nationally, gas prices are a factor too, along with inflation, interest rates and people selling stock to pay taxes later this month.
All those factors led to a disastrous day on Wall Street.
It wasn't just a massive sell-off though.
Analyst call it a 'buyer's boycott' -- no buyers to offset the sellers.
For you long term investors, the advice is 'don't panic.'
Knight Kiplinger/Publisher, Kiplinger Magazine: "IGNORE THE TURMOIL OF THESE PEAKS AND VALLEYS BECAUSE VOLATILITY IS HERE TO STAY."
And experts point out these corrections create terrific buying opportunities.
Have we switched to a bear market?
No. It would take a sustained drop of more than 20-percent.
But keep your eyes open Monday.
Some experts say we haven't seen the bottom yet and the selling could continue.
