This is The Wall Street Digest Hotline Update for Friday, May 9, 2008, at 6:00 p.m. EST.

Insurance giant AIG announced $9 billion in pretax write-downs, which pushed stock prices down sharply at the opening bell. AIG shares lost 8 percent today. At the close, the Dow sank almost 121 points, closing at 12,745, while the Nasdaq fell 5 points, closing at 2,445. Oil closed $2.47 higher at $126.16 per barrel, and gold closed $4.30 higher at $886.40 an ounce.

Rising oil prices weighed on stock prices today. Higher oil prices are still ahead because demand still exceeds supply. What is Congress waiting for? Taxing oil company profits will not increase supply; neither will lifting the federal tax on gasoline.

Do not sell any of our food, seed, agriculture or fertilizer stocks and ETFs. One billion people are starving due to the worst global food shortage in history. Be sure to own Potash (symbol POT).

Let's continue to avoid the housing sector. I would not purchase residential nor commercial real estate. I still do not expect the housing market to bottom in 2008.

Stay close to our Tuesday/Friday Hotline Updates. I will be adjusting our portfolio of recommendations to capture maximum profits from a stock market rally.

The next Hotline Update will be on Tuesday, May 13, 2008, at 6:00 p.m. EST.

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