Saturday, May 19, 2018
Business

Small investors worry about plunging stock markets

NEW YORK — January's global selloff in stocks has left many small investors more puzzled than panicked, and unsure how to act.

They're holding on for now as prices tumble, but their anxiety is mounting. The number of small investors who say they feel "bearish" soared last week, according to a U.S. survey. Some stock funds have been hit with their biggest withdrawals since 2012.

If more people start selling, it would reverse a new and surprising trend in some of the world's biggest economies: individuals moving back into stocks after years of shunning them.

"I don't know what to do," says Ken Duska, a retiree in Mingo Junction, Ohio, who is sticking with his investment plan for now, though he's not sure that's wise.

Small investors around the world were on edge even before growing signs of a slowdown in China and plunging emerging-market currencies sent stocks sharply lower. They were fearful stocks had climbed too fast, and were overdue for a drop, after soaring by double-digit percentages in countries like the U.S., Japan and France in 2013. In the United States, some stock bulls had been bracing for a drop of 10 percent or more, known on Wall Street as a correction. That hasn't happened in more than two years.

Now, they have more cause to believe one may be at hand.

The Dow Jones industrial average has swooned 5 percent from a recent peak after investors became unnerved by reports of a manufacturing drop in China and economic mismanagement in countries like Argentina that sent the nation's currency plunging.

"The question is, 'Is this all of it, or is there significantly more to come?' " says Greg Sarian, a managing director at the Sarian Group at HighTower, a wealth advisory firm.

Since the 2008-09 financial crisis, small investors have mostly dumped stocks. But recently, buoyed by strengthening economies in the developed world, they have crept back into the markets.

Now, that flood of money might reverse as investors grow more worried.

At the start of the year, more than twice as many U.S. investors said they were bullish on stocks than said they were bearish in a survey by the American Association of Individual Investors. Now, the bears and bulls are neck and neck, with sentiments yo-yoing along with the indexes.

"I've lost . . . maybe $50,000 in the past week, and I'm not happy about it," says Scott Woodall, 44, of Acworth, Ga. "I hate the stock market."

A sign of the times: The price of gold, considered the ultimate "safe" asset by fearful investors, is up 3.3 percent this year after plunging 28 percent in 2013. Investors are also buying U.S. Treasury bonds despite Federal Reserve moves to scale back its purchases of them. The yield on the benchmark 10-year note, which falls when prices rise, has dropped from 3 percent at the start of the year to 2.7 percent.

Comments
Camping without the hassle: New service rents you all the gear you need, plus the car

Camping without the hassle: New service rents you all the gear you need, plus the car

One day in April, I returned from a camping trip - a quick 24 out of the city - and ran a load of laundry. Whatís more telling is what I didnít do.I didnít hose down a muddy tent, I didnít soak a shoddily cleaned pot, and I categorically did not empt...
Published: 05/19/18
Romano: Save your money, sports betting wonít be in Florida anytime soon

Romano: Save your money, sports betting wonít be in Florida anytime soon

It is the middle of the day and the beginning of the off-season at Tampa Bay Downs. That means the action is limited to simulcast wagering, and that means the televisions outnumber the bettors.The parimutuel industry is long past its heyday in Americ...
Published: 05/19/18
Son of Crabby Billís founder leaves complex legacy of troubled projects and good deeds

Son of Crabby Billís founder leaves complex legacy of troubled projects and good deeds

SOUTH PASADENA ó Like his father, who founded the Crabby Billís seafood restaurant chain, John Loder Sr. had a larger-than-life personality. That was one reason he dived into the real estate business, becoming a well-known, if at times controversial ...
Published: 05/18/18
Updated: 05/19/18
Global Tampa Bay initiative seeks to grow direct foreign investment through expanded regional teamwork

Global Tampa Bay initiative seeks to grow direct foreign investment through expanded regional teamwork

TAMPA ó A decade ago, the Great Recession put Hillsborough and Pinellas countiesí efforts to grow their foreign exports on hold.But since then those efforts have returned, gained support and momentum, expanded the range of their ambition and are now ...
Published: 05/18/18
Florida unemployment holds at 3.9 percent, state adds 9,600 jobs

Florida unemployment holds at 3.9 percent, state adds 9,600 jobs

Floridaís economy appears to have plateaued with its unemployment rate holding at 3.9 percent for the seventh straight month, according to the April report released Friday.But some economists say it may be a good thing if the rate doesnít fall much m...
Published: 05/18/18
Lawsuit over Riverwalk Place tower in downtown Tampa settled

Lawsuit over Riverwalk Place tower in downtown Tampa settled

TAMPA ó A lawsuit over the mix of residences and offices in the planned $350 million Riverwalk Place tower has been dropped.Last August, Riverwalk Tower Investment-Intown LLC, which had been expected to be one of the developers in the project, filed ...
Published: 05/18/18
Orlandoís new attractions power jump in theme park attendance

Orlandoís new attractions power jump in theme park attendance

By MIKE SCHNEIDERORLANDO ó The arms race to build new theme park attractions in Orlando is paying dividends. A new report released this week shows theme park attendance at the largest parks in North America last year was up 2.3 percent, powered by ne...
Published: 05/18/18
How Mosaicís relocation could help Tampa International Airport land a flight to Brazil

How Mosaicís relocation could help Tampa International Airport land a flight to Brazil

Tampa International covets a nonstop flight to S„o Paulo, Brazil. Mosaic Co, which is moving its headquarters to Hillsborough County, has huge holdings in the country, including several mines. Could Mosaicís relocation help TIA realize its dream? It ...
Published: 05/18/18
Remember that upscale Guy Harvey RV resort near Tarpon Springs. Forget the Guy Harvey part

Remember that upscale Guy Harvey RV resort near Tarpon Springs. Forget the Guy Harvey part

HOLIDAY ó A year ago this month, Guy Harvey Outpost Resorts announced plans for its first-ever RV park, near Tarpon Springs where the Anclote River empties into the Gulf of Mexico.The $35 million resort, named after the popular Jamaican marine artist...
Published: 05/18/18
American Dream Miami to become largest mall in U.S. after final approval

American Dream Miami to become largest mall in U.S. after final approval

MIAMI ó A gigantic $4 billion retail and entertainment complex won government approval Thursday after years of debate, greenlighting what promises to be the largest mall in North America, just a few miles from the environmentally sensitive Everglades...
Published: 05/18/18