Oct. 6--Auto stocks slammed on the brakes this morning, as anxiety about the economy hit a frenzy and the Dow tumbled 500 points at one point.

Ford Motor Co. fell to $3.45 a share, down 60 cents a share or 14.8% in trading before 11 a.m.

General Motors Corp. stock fell to $8.28 a share, down 72 cents or 8% before 11 a.m.

Both stocks were trading at new 52-week lows.

David Sowerby, portfolio manager for Loomis, Sayles & Co. in Bloomfield Hills, said the stock market is greatly on edge about what happens next in this economy and what happens next with the bailout.

Traders are concerned, he said, about when the government will buy toxic assets -- and at what prices. The passage of the $700-billion bailout package alone isn't enough to unfreeze the credit markets.

"You can lead a horse to water, but you can't make him lend," Sowerby said.

Chris Ruth, chief investment officer of Comerica Asset Management in Detroit, said there is a realization that the credit crisis is a global problem.

So U.S. companies may have more difficultly selling goods overseas, as consumers across the globe cut back, too.

Companies that depend on consumer spending saw their stocks heavily hit this morning.

"No. 1, credit is not available," Ruth said. "And the consumer is reining in spending enormously."

Sowerby noted that many types of industries -- energy, consumer staples, you name it -- were being hit hard today.

"There's no place to hide," Sowerby said.

In general, market watchers expect the uncertainties to continue in the days ahead.

Ruth advised that savers who are setting aside money in 401(k) plans should continue to invest because they're taking advantage of dollar-cost-averaging. As prices go down, they're able to buy more shares.

"These types of battered markets are where you're going to get your best buys," Ruth said.

But he noted that investors who have large sums of money sitting in savings should not jump in aggressively and put large amounts of money in stocks in this type of fallout.

"You don't need to put all your money into the equity market tomorrow," Ruth said.

Sowerby noted that long-term investors should also try not to panic on days like today.

"What you want to avoid is the capitulation trade -- which is 'I can't take it anymore,' " Sowerby said.

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