CICERO, N.Y. — Chick-fil-A, an Atlanta, Georgia–based restaurant chain that specializes in chicken sandwiches, has broken ground on its upcoming location in Cicero. The site
The Transportation Security Administration (TSA) has installed “the latest” checkpoint-screening technology equipment at three North Country airports. They include Ogdensburg International Airport, Massena International Airport,
UTICA, N.Y. — Mohawk Valley Community College (MVCC) will use federal funding of more than $1 million for its YouthBuild program. YouthBuild is a pre-apprenticeship
UTICA, N.Y. — The American Academy of Sleep Medicine (AASM) has renewed the five-year accreditation for the Mohawk Valley Health System (MVHS) sleep-disorders center. AASM
SALINA — CXtec CEO Peter Belyea says the firm plans to create between 20 and 25 new jobs locally after acquiring a company in Georgia. He also noted that the exact number of positions is “yet to be determined.” Belyea’s comment was part of an Aug. 22 news release in which the company announced its
SALINA — CXtec CEO Peter Belyea says the firm plans to create between 20 and 25 new jobs locally after acquiring a company in Georgia.
He also noted that the exact number of positions is “yet to be determined.”
Belyea’s comment was part of an Aug. 22 news release in which the company announced its acquisition of Atlantix Global Systems, a Norcross, Georgia–based reseller of new, reconfigured, and refurbished information-technology (IT) equipment. Atlantix employs 110.
CXtec, the d/b/a name of CABLExpress Corp., didn’t release any terms of its acquisition agreement.
CXtec, which operates at 5404 South Bay Road in Salina, buys and sells used networking hardware, phones, and cabling.
“We believe this acquisition creates an industry-leading and dynamic organization that places us in a position to maximize the market,” Belyea contended. “As a full-service IT-lifecycle management company, we will strengthen the value we bring to our customers. The dedication and collective talent of our teams, reputations, and systems will create tremendous opportunities for both organic and inorganic growth.”
The addition of Atlantix accelerates CXtec’s “growth strategy” by adding server/storage products to its equal2new brand; strengthening its RapidCare offering; and allowing the company to enter the enterprise IT asset disposition (ITAD) space, said Belyea.
Belyea will be the CEO of the combined company, which will retain its world headquarters in Salina. Brian Glahn will remain president of Atlantix, whose operations will continue in Atlanta, focusing on the expansion of its server/storage and ITAD segments.
“We believe that Central New York is a great place for us to grow our business and remain committed to the community. As the integration progresses, we anticipate adding additional positions throughout the organization,” Belyea said.
CXtec’s acquisition announcement comes nearly a year after an affiliate of H.I.G. Capital, a Miami, Florida–based investment firm, acquired a “majority interest” in CXtec and sister company TERACAI Corp. in late August 2016.
H.I.G. Capital is a private-equity and alternative-asset investment firm.
A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk, including the possible loss of principal, here are six basic principles that may help you invest more successfully. Long-term compounding can help your nest egg grow It’s the “rolling
A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk, including the possible loss of principal, here are six basic principles that may help you invest more successfully.
Long-term compounding can help your nest egg grow
It’s the “rolling snowball” effect. Put simply, compounding pays you earnings on your reinvested earnings. The longer you leave your money at work for you, the more exciting the numbers get. For example, imagine an investment of $10,000 at an annual rate of return of 8 percent. In 20 years, assuming no withdrawals, your $10,000 investment would grow to $46,610. In 25 years, it would grow to $68,485, a 47 percent gain over the 20-year figure. After 30 years, your account would total $100,627. (Of course, this is a hypothetical example that does not reflect the performance of any specific investment.)
This simple example also assumes that no taxes are paid along the way, so all money stays invested. That would be the case in a tax-deferred individual retirement account or qualified retirement plan. The compounded earnings of deferred tax dollars are the main reason experts recommend fully funding all tax-advantaged retirement accounts and plans available to you.
While you should review your portfolio on a regular basis, the point is that money left alone in an investment offers the potential of a significant return over time. With time on your side, you don’t have to go for investment “home runs” in order to be successful.
Endure short-term pain for long-term gain
Riding out market volatility sounds simple, doesn’t it? But what if you’ve invested $10,000 in a stock and the price of the stock drops like a stone one day? On paper, you’ve lost a bundle, offsetting the value of compounding you’re trying to achieve. It’s tough to stand pat in that case.
There’s no denying it — the financial marketplace can be volatile. Still, it’s important to remember two things. First, the longer you stay with a diversified portfolio of investments, the more likely you will be to reduce your risk and improve your opportunities for gain. Though past performance doesn’t guarantee future results, the long-term direction of the stock market has historically been up. Take your time horizon into account when establishing your investment game plan. For assets you’ll use soon, you may not have the time to wait out the market and should consider investments designed to protect your principal. Conversely, think long-term for goals that are many years away.
Second, during any given period of market or economic turmoil, some asset categories and some individual investments historically have been less volatile than others. Bond-price swings, for example, have generally been less dramatic than stock prices. Though diversification alone cannot guarantee a profit or ensure against the possibility of loss, you can minimize your risk somewhat by diversifying your holdings among various classes of assets, as well as different types of assets within each class.
Spread your wealth through asset allocation
Asset allocation is the process by which you spread your dollars over several categories of investments, usually referred to as asset classes. These classes include stocks, bonds, cash (and cash alternatives), real estate, precious metals, collectibles, and in some cases, insurance products. You’ll also see the term “asset classes” used to refer to subcategories, such as aggressive growth stocks, long-term growth stocks, international stocks, government bonds (U.S., state, and local), high-quality corporate bonds, low-quality corporate bonds, and tax-free municipal bonds. A basic asset allocation would likely include at least stocks, bonds (or mutual funds of stocks and bonds), and cash or cash alternatives.
Asset allocation is important for two main reasons. First, the mix of asset classes you own is a large factor — some say the biggest factor by far — in determining your overall investment-portfolio performance. In other words, the basic decision about how to divide your money between stocks, bonds, and cash is probably more important than your subsequent decisions over exactly which companies to invest in, for example.
Second, by dividing your investment dollars among asset classes that do not respond to the same market forces in the same way at the same time, you can help minimize the effects of market volatility while maximizing your chances of return in the long term. Ideally, if your investments in one class are performing poorly, assets in another class may be doing better. Any gains in the latter can help offset the losses in the former and help minimize their overall impact on your portfolio.
Consider liquidity in your investment choices
Liquidity refers to how quickly you can convert an investment into cash without loss of principal (your initial investment). Generally speaking, the sooner you’ll need your money, the wiser it is to keep it in investments with comparatively less volatile price movements. You want to avoid a situation, for example, where you need to write a tuition check next Tuesday, but the money is tied up in an investment whose price is currently down.
Therefore, your liquidity needs should affect your investment choices. If you’ll need the money within the next one to three years, you may want to consider certificates of deposit or a savings account, which are insured by the FDIC, or short-term bonds or a money-market account, which are neither insured nor guaranteed by the FDIC or any other governmental agency. Your rate of return will likely be lower than that possible with more volatile investments such as stocks, but you’ll breathe easier knowing that the principal you invested is relatively safe and quickly available, without concern over market conditions on a given day.
Note: If you’re considering a mutual fund, consider its investment objectives, risks, charges, and expenses, all of which are outlined in the prospectus, available from the fund. Consider the information carefully before investing.
Dollar-cost averaging: investing consistently and often
Dollar-cost averaging is a method of accumulating shares of stock or a mutual fund by purchasing a fixed-dollar amount of these securities at regularly scheduled intervals over an extended time. When the price is high, your fixed-dollar investment buys less; when prices are low, the same dollar investment will buy more shares. A regular, fixed-dollar investment should result in a lower average price per share than you would get buying a fixed number of shares at each investment interval.
Remember that, just as with any investment strategy, dollar-cost averaging can’t guarantee you a profit or protect you against a loss if the market is declining. To maximize the potential effects of dollar-cost averaging, you should also assess your ability to keep investing even when the market is down.
An alternative to dollar-cost averaging would be trying to “time the market,” in an effort to predict how the price of the shares will fluctuate in the months ahead so you can make your full investment at the absolute lowest point. However, market timing is generally unprofitable guesswork. The discipline of regular investing is a much more manageable strategy, and it has the added benefit of automating the process.
Buy and hold, don’t buy and forget
Unless you plan to rely on luck, your portfolio’s long-term success will depend on periodically reviewing it. Maybe your uncle’s hot stock tip has frozen over. Maybe economic conditions have changed the prospects for a particular investment, or an entire asset class.
Even if nothing bad at all happens, your various investments will likely appreciate at different rates, which will alter your asset allocation without any action on your part. For example, if you initially decided on an 80 percent to 20 percent mix of stocks to bonds, you might find that after several years the total value of your portfolio has become divided 88 percent to 12 percent (conversely, if stocks haven’t done well, you might have a 70-30 ratio of stocks to bonds in this hypothetical example). You need to review your portfolio periodically to see if you need to return to your original allocation. To rebalance your portfolio, you would buy more of the asset class that’s lower than desired, possibly using some of the proceeds of the asset class that is now larger than you intended.
Another reason for periodic portfolio review is that your circumstances change over time, and your asset allocation will need to reflect those changes. For example, as you get closer to retirement, you may decide to increase your allocation to less volatile investments, or those that can provide a steady stream of income.
Vicki Brackens, ChFC, is president of Brackens Financial Solutions Network, LLC. She is a registered representative of Lincoln Financial Advisors Corp. Contact Brackens at (315) 428-8484 or email: Vicki.brackens@lfg.com
Author disclosure: Tips were prepared by Broadridge Investor Communication Solutions, Inc. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. Brackens Financial Solutions Network is not an affiliate of Lincoln Financial Advisors Corp
SENECA FALLS — New York Chiropractic College (NYCC) held commencement exercises for five degree programs on its Seneca Falls campus in late July. The college conferred degrees on 146 students — 31 from the doctor of chiropractic (DC) program; 18 from the master of science in acupuncture (MSA) and master of science in acupuncture and oriental
SENECA FALLS — New York Chiropractic College (NYCC) held commencement exercises for five degree programs on its Seneca Falls campus in late July.
The college conferred degrees on 146 students — 31 from the doctor of chiropractic (DC) program; 18 from the master of science in acupuncture (MSA) and master of science in acupuncture and oriental medicine (MSAOM) programs; 67 from the master of science in applied clinical nutrition (MSACN); one from the master of science in diagnostic imaging (MSDI) residency; and 29 from the master of science in human anatomy and physiology instruction (MSHAPI) program.
NYCC President Frank J. Nicchi presided over the final commencement before his retirement on Aug. 31 and delivered the commencement address, the college said in a news release.
Nicchi, who has led the college since September 2000, has been a member of the NYCC faculty since 1980. He maintains the faculty rank of professor in the Department of Chiropractic Clinical Sciences.
Focusing on what will be rather than what was, Nicchi told the graduates that they can and must invent their future. “It is up to you make the decisions that will define your course,” he said, according to the release. He encouraged the graduates to adopt “personal touchstones as quality measures” to assure their success and keep them on their chosen path.
Nicchi illustrated how each of “The Four Agreements,” from the book of the same name by Don Miguel Ruiz, provides vital guidance. He asked the graduates to consider how they might integrate these principles into their lives as professionals.
Reflecting on his own tenure at NYCC, Nicchi said he counts the college among his blessings and, although he holds degrees from other institutions, will always consider NYCC his alma mater. “If you cut me, I bleed NYCC Blue!” he exclaimed. “I became a chiropractor at this College when it was located downstate, and for 37 years, I have been employed here as a faculty member, administrator, and president. Because of NYCC, I developed many of my closest friendships. I have been provided with opportunities to serve that I could never have imagined.”
Prior to his appointment as NYCC president, Nicchi was dean of postgraduate and continuing education as well as a prominent seminar and conference lecturer. He also maintained a chiropractic practice in New York state for some 22 years.
On Aug. 2, the Dow Jones Industrial average set a record, closing above 22,000 for the first time (and as of press time, was still hovering around there). People will debate the cause of the stock-market rally and how long it will last, but there is only one answer that matters to the prudent investor
On Aug. 2, the Dow Jones Industrial average set a record, closing above 22,000 for the first time (and as of press time, was still hovering around there). People will debate the cause of the stock-market rally and how long it will last, but there is only one answer that matters to the prudent investor — time.
Markets go up over time. Over the last 90 years, the S&P 500 (a better gauge of the U.S. stock market than the Dow) has seen 11 “bear markets” during which the index fell by more than 20 percent of its value. In four of these instances, the index fell by 48 percent or more, with the largest fall (86 percent) coming during the Great Depression. Despite these large declines in value, if you had bought and held from 1927 through today, you would have realized an annualized 9.9 percent return. The biggest losers were not people who failed to foresee Black Tuesday, the 1973 oil embargo, the dot-com bubble, or the financial crisis. They were people who had not invested.
The stock market is notoriously difficult to predict. On Aug. 13, 1979, Businessweek ran a famous cover story entitled “The Death of Equities.” Businessweek cited inflation, changing regulation, and an increase in investment alternatives as the reason America should “regard the death of equities as a near-permanent condition.” Over the next 20 years, the Dow would jump from 839 to 11,497, and investors in the S&P 500 would receive a 17.7 percent annualized return.
In 1999, or 20 years after the Businessweek story, Kevin Hassett and James Glassman wrote “Dow 36,000,” a book articulating why the Dow would triple by 2005. Hassett and Glassman argued the cost of equity should be on par with treasury yields, leading them to conclude the “single most important fact about stocks at the dawn of the twenty-first century: They are cheap… If you’re worried about missing the market’s big move upward, you will discover that it is not too late.” In January 2005, the Dow closed at 10,490. “Dow 36,000” now sells used for 1 cent on Amazon.
In addition to being unprofitable, market timing is also mentally punishing. If you were to sell out of your position now and, in a year, the market was 10 percent higher (Dow 24,200), would you get back in or keep waiting for the fall? If, instead, it was 10 percent lower in a year (Dow 19,800), would you stay on the sidelines in anticipation of more declines, or would you conclude the market had bottomed out? The challenge with market timing is that you need to be right twice — when you sell and when you buy back in. And remember, by being out of the market, you’re also missing the 2 percent annual dividend that large-cap stocks are paying.
Is today’s market overvalued? Your conclusion depends on your perspective. Over the last 7.5 years the S&P 500 has generated 13.3 percent annualized appreciation, suggesting today’s market is overvalued. However, since 2000, it has returned 4.9 percent, suggesting it’s undervalued. Since 1990, the market has returned 9.6 percent, on par with its 90-year average.
You can play the same game with price-to-earnings (P/E) ratios. Currently, the P/E ratio of the S&P 500 is high by historical standards, suggesting the market is overvalued. However, stocks look forward, not backwards, and the forward-looking P/E ratio is slightly overvalued but much closer to “normal.” Lastly, the earnings yield of equities (P/E’s inverse) relative to yields on long-term bonds actually makes stocks look cheap. Are stocks overvalued? It’s anyone’s guess.
The Dow has reached a new high because markets go up over time. However, there are periods where they go down. If you can’t financially afford or mentally stomach a 40 percent or greater decline in your portfolio, you shouldn’t be 100 percent invested in stocks. Find a risk profile that matches your needs; diversify from the S&P 500 to other markets such as small-cap stocks, international stocks, and bonds; and stick with your allocation. Trying to outsmart the market leaves most people feeling foolish.
Ethan Gilbert is a vice president at Disciplined Capital Management and a financial advisor at Rockbridge Investment Management.
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