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Dividend-paying stocks have been hurt the past month. The S&P Utilities index is down nearly 5 percent while the S&P Telecommunications index is down 4 percent. Another type of investment that got hit in recent weeks was real estate investment trusts
-- investment companies that focus on buying and managing real estate. An index that tracks REITs, as real estate investment trusts are commonly known, is down nearly 8 percent. Investors also have broader economic concerns. It is unclear how the possible ending of the Fed's bond-buying program will affect growth. "Bernanke is going to try to make this transition as smooth as possible, but we just don't know how much (the bond buying) is going to be scaled back," Krosby says. "And the biggest enemy to the market is uncertainty." Investor worries have also been heightened by bad news from retailers. Wal-Mart, Kohl's, Macy's and Saks all cut their investment outlooks for the year last week
-- raising concerns that the American consumer, who makes up roughly 70 percent of the U.S. economy, might be pulling back. While stocks have declined noticeably in the last few weeks, it's important to keep things in perspective, says Greg Sarian, managing director of the Sarian Group at HighTower Advisors and a certified financial planner. The S&P 500 is up 16 percent this year while the Dow is up 15 percent. In any normal year, such returns would be considered respectable for a retirement portfolio. On Tuesday, the S&P 500 index rose 6.29 points, or 0.4 percent, to close at 1,652.35. The Nasdaq composite rose 24.50 points, or 0.7 percent, to 3,613.59. The Dow fell 7.75 points, or 0.05 percent, to 15,002.99. Sarian says more turbulence will come until investors get clarity from the Fed about its bond-buying program. "Expect to see more volatility or see a short-term pull back," Sarian says.
[Associated
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