What's Happening to the Market

CBS correspondent Jill Schlesinger explains what's happening and what investors should do.

What's Happening to the Market Female: Investors hope the stock market bounces back today after a huge sell off Thursday. Male: And for more, we’re joined by Jill Schlesinger now. Jill Schlesinger: I’d say I’m wearing green to hopefully push the market up today. Male: There you go. There you go with that being said, why is it dropping? Jill Schlesinger Well, you know yesterday was a strange day and I have to say that the real issue still is coming from Europe. A lot of investor concerned that maybe the Greek, European plan is not going to work. You know Germany acted alone to try and make some changes to trading rules. Are they really going to all be together and help bail out Greece? This got investors very worried, a big sell-off yesterday and we’re really down to levels we haven’t seen in a long time. It’s very disconcerting time for investors. Female: Jill what’s a correction and is it a good or bad thing? Jill Schlesinger: Okay, so here’s what a correction is. It’s a 10% drop from the previous high. And we always talk about corrections as a healthy part of a bull market. So you want to say, “Hey, you know a market can’t go straight up, it’s got to pull back sometimes.” We are now officially in correction territory. The Dow Jones Industrial Average is down 10.1% from its high and in some ways it’s scary and it’s bad because it makes us nervous. But it’s not bad when you think about it because we say, “Hey, you know what? It’s okay to take a break here, we just wanted to resume.” Male: Jill, we have about 10 seconds left. What should investors do now? What’s the plan? Jill Schlesinger: Investors should do nothing today. They should review their portfolios over the weekend when the emotions are not running high and make sure they are diversified. I’m going to say this every single time there is a market drop. It’s like shooting lay ups. You got to go back to the basics. Male: I like that. Female: All right, thank you, Jill.