Business
How Some Investors Are Protecting Their Money Amid Stock Market Woes
After the dot-com bubble burst in the early 2000s, Lars Staack decided to play it safe and invest his retirement savings in S&P 500 index funds, which are diversified and carry lower risk than owning individual stocks.
It was a strategy that brought him peace of mind for more than two decades — until President Trump was elected in November. As he reviewed Mr. Trump’s comments in support of sweeping tariffs, Mr. Staack, 62, who retired two years ago, became increasingly uneasy about the savings he planned to use for the rest of his retirement.
Those nerves about how Mr. Trump’s economic policies might affect the stock market led him to start selling his index funds in January, moving them into bond and Treasury funds, which are seen as safe havens in times of volatility. About a third of his savings are still in stocks. The daily swings this past week, which included the market’s worst single day in months, have made him consider moving even more of his assets into safer bonds, he said.
“I’m fumbling about, trying to figure out what is going to be the best way to preserve my retirement savings from a volatile economy, and from upcoming inflation,” Mr. Staack said.
Many financial advisers are reiterating their usual advice during moments of angst: Do nothing and stay the course, assuming your financial plan is diversified and aligned with your goals. But the tumultuous rounds of trading have jolted people like Mr. Staack, who has an immediate need for his investments. The way he sees it, stock market index funds are no longer safe for people close to or in retirement — people who intend to use their assets in the near future and do not have the luxury of time to wait for the market to reverse course.
“What Trump and Musk have done is unprecedented, so it seems like nothing is safe anymore,” Mr. Staack said. He lives in Poway, Calif., outside San Diego, and was a Republican voter until 2016, when he started voting for Democrats.
Over the past few weeks, Wall Street has become increasingly pessimistic about whipsawing policies from Washington. By Thursday, the S&P 500 index had tumbled 10.1 percent from a peak that it had reached less than one month before, a sell-off fueled by investors’ fears that trade wars and mass layoffs of federal employees could prompt an economic slowdown. The S&P 500 correction underscored how the two-year-long bull market is running out of steam in the early days of the Trump administration.
Policy and politics have been the key driver of concern among clients, financial advisers said. But not everyone is taking action. In fact, advisers at some of the biggest wealth management firms said their clients were, for the most part, sticking with their existing financial plans.
Most of the roughly seven million investors on the Vanguard brokerage platform have “stayed disciplined,” in line with their behavior during market downturns in the past, said James Martielli, Vanguard’s head of investment and trading services. On Monday, when Wall Street suffered its steepest decline of the year, only 2.5 percent of Vanguard’s clients placed trades, and the majority of those trades were to buy equities, rather than sell them, Mr. Martielli said.
“Most clients right now are a little bit dazed, but still relatively comfortable where they’re at and where things are going,” said Mark Mirsberger, the chief executive of Dana Investment Advisors, which manages about $8.5 billion for institutions and individuals.
In conversations with clients, it is often retirees, and those closing in on retirement, who are paying the closest attention to the stock market and expressing nervousness, said Rob Williams, the managing director of financial planning and wealth management at Charles Schwab. The question, he said, is how they respond.
For people closer to retirement, “taking some risk off the table” might make sense, but when politics becomes a factor in decisions, which seems to be happening more, Mr. Williams said, he urges clients to stick to their plans and “not respond emotionally.”
Siegfried Lodwig is more than a decade into his retirement, and the recent volatility has not changed his mind about keeping about half of his savings in the stock market, managed by a financial services firm. He said he trusted that the market would bounce back, as it always had.
Still, Mr. Lodwig, 80, said he planned to leave his estate to Amherst College, where years ago he received a scholarship. He said he had some concern about how much would be left for the school if the market continued to fall in the short term.
Andy Smith, the executive director of financial planning at Edelman Financial Engines, is cautioning his clients not to overreact to news headlines about Wall Street’s jitters. Those with diversified portfolios and enough cash on hand for their short-term needs are able to calm their nerves with greater ease, he said.
“In times of volatility, everybody gets uneasy,” said Heather Knight, a national brokerage coach at Fidelity Investments. “Stay the course — that’s the best way to weather through some of those periods of volatility.”
But for some Americans — especially those who anticipate needing access to their savings in the near future — the current economic unease feels different from market dips they have experienced in the past, prompting them to rethink their investments.
Praisely McNamara, a single mother whose 16-year-old son is a junior in high school, decided in February to withdraw half of her 401(k), the maximum amount she could, despite having to pay thousands in tax penalties to do so. Employed in health care sales, she is still contributing to a Vanguard index fund. But with mortgage and college tuition payments on the horizon, the economic instability spurred by Mr. Trump’s policies was enough for her to feel that she needed cash on hand.
As someone without a stockpile of savings, Ms. McNamara, of Newington, Conn., said uncertainty about trade wars and the outlook for the U.S. job market had fueled her decision.
“This is absolutely the first time that I have felt in any way like I’m not secure in what I’ve been told is the most secure way to prepare for retirement,” said Ms. McNamara, 40, who voted for former Vice President Kamala Harris.
The volatility has rattled even Americans who do not expect to use their savings in the near future.
Alison Greenlaw, 43, is still a couple of decades away from retiring. She and her husband bought their home in Bloomfield, Conn., a few years ago. (Ms. Greenlaw knows Ms. McNamara through a community organization.) Until three weeks ago, her 401(k) was in a Vanguard target date retirement fund, which had a pre-mixed blend of stocks and other holdings based on the assumption that she would retire around 2045.
But as economic concerns started to creep into the stock market in February, she decided to move all of her 401(k) savings into a Vanguard money market fund, which has lower-risk investments like government-backed securities.
“I know I won’t make any money there, but I’m not freaking out like everyone whose 401(k) is losing money every day,” Ms. Greenlaw said. “I’m feeling glad that I did what I did,” she added, pointing to the market’s tariff-induced swings this past week.
Ms. Greenlaw tried to make an informed decision by talking to people who work in finance and whose opinions she respects. Many of them advised her not to do anything. But she said she was not comfortable taking the traditional wait-and-see approach. She said she felt that the level of uncertainty in the United States right now was “existential.”
On Tuesday, Stephen Dinan, 55, whose children are 5 and 7 years old, moved their 529 college savings accounts from U.S. stocks and stock index funds into bonds and an international equities index fund. He also moved his 401(k), along with his wife’s, into bonds.
Mr. Trump’s unpredictable and aggressive approach to policy has stoked Mr. Dinan’s worries about instability in the stock market. A Democratic voter, he said he hoped to move his savings back into stocks when the economic outlook cleared, or when there was a change in administration down the line.
Financial experts are “focused on things that are moving within the game as it’s played,” he said. “But they’re not planning for if the board game itself is taken out from under.”
Business
Kanye West ordered to pay former contractor $140,000 over Malibu mansion lawsuit
A jury found Ye, the controversial music impresario formerly known as Kanye West, liable in the legal dispute brought by his former contractor and ordered him to pay $140,000.
Tony Saxon, who also worked as Ye’s security guard and caretaker at the Malibu property, sued the rapper in Los Angeles Superior Court in September 2023, claiming a slate of labor violations, nonpayment of services and disability discrimination.
The $140,000 judgment announced Wednesday is far less than the $1.7 million in damages that Saxon’s lawyers had originally requested. Ye will also have to pay for Saxon’s legal fees, which is expected to put the total sum that West will have to pay at more than $1 million.
Although Saxon’s attorneys at the Los Angeles-based firm West Coast Trial Lawyers called the verdict a “mixed” one, they characterized it as as a “vindication for our client.”
“Ye’s lawyers called him a liar, a fraud, and a malingerer in court. His medical records, bank records, and personal family history were dissected, mocked, and vilified,” said attorney Ronald Zambrano in a statement.
“In true David-vs.-Goliath fashion, Mr. Saxon stood firm against one of the biggest celebrities in the world, with the truth on his side,” Zambrano said.
Saxon alleged that while working as a security guard on the property, he was forced to sleep on the floor and was fired in November 2021 for failing to comply with Ye’s “dangerous requests.” He also said that he frequently complained to West about these and other issues, but that the rapper failed to address them.
In a statement, Ye’s spokesperson noted the jury had “rejected almost all of his [Saxon’s ] claims,” and that Saxon only recovered “a small fraction of what his lawyers demanded.”
“The jury also found that Saxon acted in the capacity of a contractor and did not qualify for the employee exception under California’s contractor licensing statutes,” according to the statement. “We believe the damages award is legally barred and we’ll be seeking post-trial relief from the court.”
Ye purchased the beachfront concrete mansion in 2021— designed by Pritzker Prize-winning Japanese architect Tadao Ando — for $57.3 million. He then gutted the property on Malibu Road, reportedly saying, “This is going to be my bomb shelter. This is going to be my Batcave.”
Three years later, the hip-hop star sold the unfinished mansion (he had removed the windows, doors, electricity and plumbing and broke down walls), at a significant loss to developer Steven Belmont’s Belwood Investments for $21 million.
In court filings Ye denied Saxon’s allegations. In a November 2023 response to the complaint, he disputed that Saxon “has sustained any injury, damage, or loss by reason of any act, omission or breach by Defendant.”
In January, Ye sued Saxon and his law firm over a $1.8 million lien placed on the Malibu mansion, alleging they “wrongfully” placed an “invalid” lien on the property “while simultaneously launching an aggressive publicity campaign designed to pressure Ye, chill prospective transactions, and extract payment on disputed claims already being litigated in court.”
The Malibu mansion that Ye purchased and gutted was later purchased and restored to its original design.
(The Oppenheim Group / Roger Davies)
That case is pending.
Ye’s spokesperson said the lien “clouded the home’s title and interfered with its sale, destroying substantial value at the time of sale.”
In recent years, the mercurial superstar has faced a number of public and legal dramas.
In 2022, Ye lost numerous lucrative partnerships with companies like Adidas and the Gap, following a raft of antisemitic statements, including declaring himself a Nazi on X (which he later recanted).
Two years later, Ye abruptly shut down Donda Academy, the troubled private school he founded in 2020.
Ye, the school and some of his affiliated businesses faced multiple lawsuits from former employees and educators, alleging they were victims of wrongful termination, a hostile work environment and other claims.
In court filings, Ye has denied each of the claims made against him by former employees and educators at Donda.
Several of those suits have been settled.
Business
Yamaha is leaving California after nearly 50 years
Yamaha Motor Corp. is relocating part of its operations to Georgia and selling its California assets after 47 years.
The company is the latest among a slew of businesses to relocate operations outside the Golden State to cut costs and improve profitability. Many cite high taxes and strict regulations as obstacles to doing business in the state.
Yamaha Motor Corp. U.S.A., the U.S. subsidiary of Yamaha Motor Co., has been based in Cypress since 1979. It will begin its move to Kennesaw, Ga., at the end of this year and complete the moving process by the end of 2028, the company said in an announcement.
The company’s marine and motorsports business facilities already moved to Kennesaw in 1999 and 2019, respectively. The Cypress facility currently houses corporate functions and the financial services business on roughly 25 acres, the company said.
Yamaha said it will sell all its land, offices, warehouses and other fixed assets in California. It will use a sale-and-leaseback arrangement for a temporary period to ensure a smooth transition and business continuity.
“This initiative is positioned as one of the Company’s key measures aimed at improving asset efficiency and enhancing profitability in the United States,” the company said in its announcement of the move. Yamaha “is undertaking structural reforms … in response to cost increases resulting from U.S. tariffs and changes in the market environment,” it said.
Yamaha Motor was founded in Japan in 1955 and began selling its products in the U.S. in 1960. The company got its start making motorcycles for racing and contests, and released its first boat motor in 1960. It acquired land in Cypress in 1978 and established an office there one year later.
Some companies have been vocal about their dissatisfaction with California’s business environment.
Last year, Bed Bath & Beyond’s executive chairman, Marcus Lemonis, said his bankrupt company won’t be reopening any stores in California, where it used to have more than 80 locations.
“California has created one of the most overregulated, expensive, and risky environments for businesses,” Lemonis said in a statement posted on X in August.
Also in August, In-N-Out owner Lynsi Synder announced she was moving her family from California to Tennessee, where she planned to open a new regional headquarters. In-N-Out’s California headquarters remains operational.
“There’s a lot of great things about California, but raising a family is not easy here,” Snyder said on a podcast at the time. “Doing business is not easy here.”
Tesla moved its headquarters out of Palo Alto in 2021, the same year that financial services firm Charles Schwab relocated from San Francisco to north Texas.
Elon Musk moved the head offices of his other companies — SpaceX and X — to Texas in 2024, as did Chevron, the oil giant that was started in California.
Business
Disneyland Resort President Thomas Mazloum named parks chief
Disneyland Resort President Thomas Mazloum has been named chairman of Walt Disney Co.’s experiences division, the company said Tuesday.
Mazloum succeeds soon-to-be Disney Chief Executive Josh D’Amaro as the head of the Mouse House’s vital parks portfolio, which has become the economic engine for the Burbank media and entertainment giant. His purview includes Disney’s theme parks, famed Imagineering division, merchandise, cruise line, as well as the Aulani resort and spa in Hawaii.
Jill Estorino will become the head of Disneyland Resort in Anaheim. She previously served as president and managing director of Disney Parks International and oversaw the company’s theme parks and resorts in Europe and Asia.
Estorino and Mazloum will assume their new roles on March 18, the same day as D’Amaro and incoming Disney President and Chief Creative Officer Dana Walden.
“Thomas Mazloum is an exceptional leader with a genuine appreciation for our cast members and a proven track record of delivering growth,” D’Amaro said in a statement. “His focus on service excellence, broad international leadership and strong connection to the creativity that brings our stories to life make him the right leader to guide Disney Experiences into its next chapter.”
Mazloum had been about a year into his tenure at Disneyland. Before that, he was head of Disney Signature Experiences, which includes the cruise line. He was trained in hospitality in Europe.
In his time at Disneyland, Mazloum oversaw the park’s 70th anniversary celebration and recently pledged to eliminate time limitations for park-hopping, which are designed to manage foot traffic at Disneyland and California Adventure.
Mazloum will now oversee a 10-year, $60-billion investment plan for Disney’s overall experiences business, which includes new themed lands in Disneyland Resort and Walt Disney World. At Disneyland, that expansion could result in at least $1.9 billion of development.
The size of that investment indicates how important the parks are to Disney’s bottom line. Last year, the experiences business brought in nearly 57% of the company’s operating income. Maintaining that momentum, as well as fending off competitors such as Universal Studios, is key to Disney’s continued growth.
In his new role, Mazloum will have to keep an eye on “international visitation headwinds” at its U.S.-based parks, which the company has said probably will factor into its earnings for its fiscal second quarter. At Disneyland Resort, that dip was mitigated by the park’s high percentage of California-based visitors.
Times staff writer Todd Martens contributed to this report.
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