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Article Submitted by: Rod Hall, Edward Jones Investments

The last few months have been difficult ones for investors. From October 2007 to the end of June, the Dow Jones Industrial Average fell about 20 percent. So, at this point, you probably have at least two big questions: What's causing this market instability? And how should you respond?

Let's start with the first question. What forces have caused the market drop?

Here are some of the chief culprits:

• Gloomy economic news — Leading economic indicators suggest a significant slowdown in growth. For example, the unemployment rate hit 5.5 percent in May, according to the Bureau of Labor Statistics. That’s an increase of over one full point in just over a year. Furthermore, oil prices recently hit another record high — over $140 per barrel. Rising energy costs can significantly affect the economy — and usually not in a good way.

• Subprime loan crisis — While the subprime loan crisis has faded somewhat from the headlines, it’s still having an impact on the investment scene. First, the problems with subprime loans hit the real estate industry and the financial services industry. But now, the subprime crisis may have spread to the extent that consumers are being forced to pull back from spending.

• Decline in international stocks — As a huge part of the global economy, the United States is far from immune to what's happening in foreign stock markets — and many of these markets are down between 20 and 30 percent over the past several months.