Money Minute: Investors Eye World Events for Next Move

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Will geopolitical tensions in Ukraine and the Middle East be what triggers a correction or will investors shrug it off in a few days?

Financial markets were hit by a double whammy of troubling developments on Thursday: Malaysian Airlines' downed plane and Israel's ground offensive in Gaza. The Dow dropped by triple digits and the VIX, known as the "fear gauge" rose by more than 32 percent -- it's biggest one-day jump since April 2013. This is leading some to question whether this could be what triggers a correction.

Disney CEO Bob Iger Rings Closing Bell At New York Stock Exchange
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Experts say it depends on what caused the plane crash. The worst-case scenario is that Russia is behind it. That could raise already heated tensions between Russia and the United States and Europe, which could have an impact on many businesses. But history tells us the market tends to get over political unrest pretty quickly. When the Ukraine crisis first emerged oil prices spiked but then leveled out. The same thing happened when Sunni insurgents attacked oil fields in Northern Iraq. It seems that this market wants to keep marching higher so it might be back to focusing on earnings and economic data before you know it.

Just how bad was the damage Thursday on Wall Street? Well, the Dow Jones industrial average (^DJI) fell 161 points, the Nasdaq composite (^IXIC) dropped 62 and the Standard & Poor's 500 index (^GPSC) was down 23 points.

If you find car dealerships intimidating because of the hard sell but you want to buy a car, you're in luck. AutoNation (AN), the U.S.'s largest car dealership chain, is going to make it possible for you to make a purchase with just a few clicks from the comfort of your couch without ever having to interact with anyone. The company is investing $100 million over the next two years to develop a new app that will also eventually allow you to get an appraisal on trade-ins. The app is expected to go live later this year. I wonder what this means for their salespeople.

And finally, a new report by the Pew Center finds that more people are living in multigenerational households than ever before and the number of millennials living in their parents or grandparents' homes has skyrocketed. More than 18 percent of the U.S. population now lives with family members of a different generation and more than 23 percent of people aged 25 to 34 live with their parents and/or grandparents. That is a roughly 23 percent jump from 2007 before the financial crisis. The main driver for the phenomenon: economics. The sluggish job market is forcing many young people to delay flying the coup or causing many to return to the nest.

-Produced by Karina Huber.

11 Pluses and Pitfalls of Moving to an 'Up-and-Coming' Neighborhood
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Money Minute: Investors Eye World Events for Next Move
If you're not one of the first ones to "discover" a gentrifying neighborhood, prices may have already climbed too high due to real estate speculation.
You may be familiar with the mantra "buy the worst house on the nicest block you can afford," a strategy for landing yourself in a desirable neighborhood without breaking the bank. "Invest in an up-and-coming neighborhood" is its cousin. You can find a house that meets your needs in an emerging neighborhood for way less than a comparable home in a more coveted area -- and soon enough (if all goes well), your area may be just as desirable.
Up-and-coming neighborhoods don't always up and come. Sometimes, an area that looks promising just gets stuck where it is. Investing in a neighborhood in transition is a calculated risk -- so calculate it before you buy.
If you want to live in the heart of a big city, but don't have the cash to afford a place downtown, finding a transitioning neighborhood on its fringe could be just the solution. You'll be close to where the action is -- and the revitalization will mean there's plenty of action directly around you, too -- but you won't pay sky-high prices.
Emerging neighborhoods can sometimes have higher crime rates than more-established locales. There's a chance gentrification will reduce that in the future, butin the near term, you'll have to decide if you're willing to live in an area that might not be as safe as you're used to.
Since the area you're considering isn't on the radar of the wider home-buying public -- yet -- you could enjoy some serious value appreciation (especially if you do some good renovation work), netting you more money when you eventually sell.
If you have kids -- or plan to soon -- you'll want to evaluate the quality of the school district they'd be going into. Gentrification tends to upgrade the quality of the schools in a neighborhood, but they may not have improved enough for your comfort by the time your kids hit the classrooms.
Up-and-coming neighborhoods offer a certain "coolness factor," as hip young people and artists tend to be among the first wave of gentrifiers. If you enjoy patronizing independent businesses, dining at new restaurants, and riding the forefront of the latest trends, you could feel right at home.
If you're living in an area with a lot of artists or students, it may be too noisy or messy. Make sure to visit properties you're interested in at different points of the day (Sunday morning, Monday evening rush-hour) to get a feel for what it's really like to live there.
People who move to emerging neighborhoods often actively identify with their communities. They're looking for like-minded people who care about the place they call home. As a result, you may find a real community spirit, with neighbors who are eager to get to know each other, pitch in and help the area realize its potential.
There's likely no neighborhood association to govern the exterior upkeep of houses -- but you might consider this a plus, as lack of a covenant-controlled community also lets homeowners express their personal style more freely.
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