Goshen News, Goshen, IN

Business

February 12, 2014

Market downturn creates stock bargains

Investors can boost 401(k) plans at less cost

NEW YORK — This year's stock market decline has left investors uneasy.

But money managers say take a breath — the downturn could offer opportunities to strengthen your retirement savings for the long run.

Signs of slower growth in China and other emerging-market economies, as well as weak reports on U.S. manufacturing and hiring, have shaken investors' confidence. And while stocks have rallied in recent days, most big indexes in the U.S. are still negative for the year.

There's an upside, though. People making regular, fixed purchases of stocks or bonds through a 401(k) retirement plan can now buy more stocks at cheaper prices. Dropping prices also allow them to shift, or rebalance, their portfolios toward stocks and away from bonds. Falling prices can be viewed as opportunities for those who believe the market will climb over the long haul.

More broadly, a sell-off can be healthy because it resets investors' expectations after big gains, and it stops the market from getting out of line with economic reality.

Rebalancing portfolios

After the stock market collapse of 2008 and the Great Recession, many investors switched their investments from stocks to bonds, or cash, because the assets were considered less risky.

Those moves paid off for a few years. But with the overall economy looking healthier, many analysts are advising investors to put more money into stocks and cut their exposure to bonds. That's because long-term interest rates are expected to rise as the economy improves and the Federal Reserve reduces a huge bond-buying program.

Rising interest rates in an environment of accelerating growth is good for the stock market, but bad for bonds, says Gerry Paul, chief investment officer for North American Value Equities at Alliance Bernstein. Investors should hold stocks to offset losses they will suffer if interest rates climb.

Text Only
Business
  • BIZ GN0424 infuse salon Infuse Salon relocates in Middlebury MIDDLEBURY — Infuse Salon in Middlebury has been around since 2009, under new ownership since 2012 and recently launched a website that allows customers to book appointments online. So Monday’s ribbon-cutting ceremony at the salon’s location along U

    April 23, 2014 1 Photo

  • Seed corn company expanding Howe facility HOWE — An agriculture company will invest $4 million to expand its local facility. Acccording to the LaGrange County Economic Development Corp., Gro Alliance will add a warehouse and six new corn dryers to its seed corn operation near Howe. Additiona

    April 22, 2014

  • BIZ GN0423 economy image Spring lifts U.S. economy WASHINGTON — Spring's thaw is reviving the economy, too. A recent batch of government and business reports show a U.S. economy emerging from winter's deep freeze. Economists had expected the growth to accelerate in 2014 after two years of slow and

    April 22, 2014 1 Photo

  • NWS GN140421 jobless rate Elkhart County jobless rate drops to 5.8 percent

    Elkhart County’s jobless rate dropped below 6 percent last month, according to figures released today by the Indiana Department of Workforce Development.
    The March unemployment rate for the county was estimated at 5.8 percent, compared to the February estimate of 6.2 percent and the March 2013 figure of 8.3 percent.

    April 21, 2014 1 Photo

  • BIZ GN0421 digital life review image Windows Phone advances with 8.1 update NEW YORK -- Microsoft's new Windows system for smartphones addresses many of the shortcomings in previous versions. Before, voice search lacked the natural language interactions of Apple's Siri and Google Now. The updated Windows Phone system has Cor

    April 21, 2014 1 Photo

  • BIZ GN140421 small business image Mentors help minority companies NEW YORK -- Mel Gravely says his construction company might not exist today if he didn't have mentors to guide it. Gravely's company, TriVersity, joined a program called a minority business accelerator even before he bought a controlling interest in

    April 21, 2014 1 Photo

  • BIZ GN0420 car talk image Beetle marks 65th year since entry into U.S. Sixty-five years after the first Volkswagen Beetle arrived in the United States as a distinctively shaped, little car, the Beetle keeps attracting buyers with its more-spacious-than-ever, flexible interior, turbo engine power and modernized iconic lo

    April 20, 2014 1 Photo

  • BIZ GN0420 tech talk image Mistakes businesses make with their home page Mistakes businesses make with their home page

    April 20, 2014 1 Photo

  • Ben's Pretzels adds three franchises GOSHEN — Ben’s Soft Pretzels will open three new franchised pretzel bakeries in the next 45 days. According to the company, leases have been signed and construction has begun on the stores. The Madison, Wis. location will be in the West Towne Mall. T

    April 18, 2014

  • BIZ GN0419 target breach image Cyber cops: Target hackers may take years to find WASHINGTON — Secret Service investigators say they are close to gaining a full understanding of the methods hackers used to breach Target's computer systems last December. But the agency says it could take years to identify the criminals who stole so

    April 18, 2014 1 Photo

Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video
U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' Obama to Oso: We'll Be Here As Long As It Takes Bon Jovi Helps Open Low-income Housing in Philly S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter SCOTUS Hears Tv-over-Internet Case Chief Mate: Crew Told to Escape After Passengers
Poll

There has been discussion at West Goshen Elementary School to require mandatory student uniforms in the future. How do you feel about the prospect of mandatory student uniforms in a public school environment?

I think it’s an excellent idea that is way overdue
I think it’s a bad idea and would be restrictive for students and parents.
     View Results