Money Minute: Bull Market Out of Steam? Cash King After Security Breaches

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Most of us are hoping that February is warmer than the frigid days of January, and that the stock market can heat up after going cold last month.

Investors want to know whether the recent bout of selling is just a normal correction that's part of a bull market that still has room to run, or the start of much sharper market sell-off.

The Dow Jones industrial average (^DJI) fell more than 1 percent last week, while the Nasdaq composite (^IXIC) and the Standard & Poor's 500 index (^GPSC) both lost about 0.5 percent.

For all of January, the Dow tumbled 877 points. That's a steep decline of more than 5 percent. The Nasdaq lost 1.7 percent for the month and the S&P fell 3.5 percent. It was the market's worst performance in 20 months.

Cash is king once again. With all of the news recently about credit card hacking,
more and more shoppers are turning back to using cash whenever possible. An AP poll found 37 percent of Americans are trying to make the switch.

In a bid to get more customers, AT&T (T) has cut the price it charges for a family wireless plan by 20 percent. Four smartphone users could share 10 gigabytes of data for $160 a month. It's hard to compare this plan on an apples-to-apples basis with other major providers, since they all offer different things, but it seems to be a very competitive price. However, AT&T customers will have to pay full price for their phones.

The men's clothing store retailers Jos. A. Bank (JOSB) and Men's Wearhouse (MW) have been at war in recent months, making hostile takeover bids for each other. Now a new player has entered the fray. Various reports say Jos. A. Bank is talking about buying Eddie Bauer. Such a deal could be a defensive move, making Jos. A. Bank harder to acquire. It could also give it more heft if it wants to continue the battle for Men's Wearhouse.

-Produced by Drew Trachtenberg.


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37 Comments

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eve1124@fvonline.net

Why the change? I can\'t get to my \"new portfolio\"\'. Does that mean that it has not been transfer -red ? Will it take another 24 hours? That\'s bad.

February 04 2014 at 1:16 PM Report abuse rate up rate down Reply
pdbliz

MOVE MONEY HERE,,,,MOVE MONEY THERE,,,,,,ADD MONEY THAT WAS PRINTED,,,WE DO NOT HAVE,,,AND,,,,SOON,,
IT WILL HIT ROCK BOTTOM,,,

ALL CONTROLLED BY THE GOVERMENT...

February 03 2014 at 5:18 PM Report abuse rate up rate down Reply
valdezcmrll

Bring back the old aol , this new one is bad

February 03 2014 at 4:40 PM Report abuse +3 rate up rate down Reply
1 reply to valdezcmrll's comment
pdbliz

AOL IS SPYING ON YOU.!!!!!!

February 03 2014 at 5:15 PM Report abuse rate up rate down Reply
mkwrblwsk

Thank you Mr. president for the rise in the market that you boasted about...LOL.

February 03 2014 at 4:13 PM Report abuse -2 rate up rate down Reply
ZMAN

Time to speed up the cash presses, the Obama phony economy cannot falter.

February 03 2014 at 4:00 PM Report abuse +1 rate up rate down Reply
kolblh

After two devastating loses over the last fiften years I was thinking of getting back in the market. Debating should I give it another shot. Changed my thinking, satisfied with three percent on cash investments. Not needing returns to live on I decided to be content and get a good night sleep every night. I like my weekly poker game every week and that's enough gambling for me. Too old to panic, retired for fifteen years and enjoying every minute. Good luck with your portfolios.

February 03 2014 at 3:57 PM Report abuse rate up rate down Reply
1 reply to kolblh's comment
theycallmeroy3

I love Happy. Knowing ones risk tolerance is huge. And sometime age, really does matter.

February 03 2014 at 4:04 PM Report abuse rate up rate down Reply
wongtpa

The correction is long overdue. Much more to come is an economy artificially supported by the Feds!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Stop spending $85,000,000,000 monthly supporting this failed economy!

February 03 2014 at 3:37 PM Report abuse +2 rate up rate down Reply
1 reply to wongtpa's comment
pdbliz

YOU ARE ONE OF THE FEW THAT KNOWS WHAT IS GOING ON,,,
THANK YOU.

February 03 2014 at 5:16 PM Report abuse +2 rate up rate down Reply
gem46er

I remember all of these comments from several years ago. I bought when the market was low then and the VIX was above 50, and my IRA has doubled since. I raised about 65% in cash when Apple came out with its bad quarter, and now I'll wait until I perceive a new low (doesn't have to be "the" low). We'll survive again.

February 03 2014 at 3:15 PM Report abuse +1 rate up rate down Reply
1 reply to gem46er's comment
theycallmeroy3

Mama raised you right.

February 03 2014 at 3:16 PM Report abuse rate up rate down Reply
----

I have been an AOL customer for decades. YOUR ATTEMPT TO UPGRADE DAILY FINANCE IS A DISASTER. I have been using Daily Finance My Portfolios to download stock quotes accurately and well suited to my spreadsheets. I do not want to share MY PERSONAL FINANCIAL INFORMATION with your site! So far your have trashed my data even on my Windows 7 platform not to mention XP platform. Technology is again putting older people at a disadvantage. We are not all MOBILE USERS. I guess I will tell all my friends how BAD AOL has become.

February 03 2014 at 3:15 PM Report abuse +4 rate up rate down Reply
Curt's Stuff

Please bring back the old \"Portfolio.\" The new one sucks.

PS Cash in a portfolio counts in the total. One shouldn\'t have to bring out the adding machine to see the total.

IF A WATCH IS RUNNING FINE, DON\'T TRY TO FIX IT!

February 03 2014 at 3:10 PM Report abuse +5 rate up rate down Reply