Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
If you’re a young investor, and even if you’re anxious about the effects of the coronavirus pandemic, most of your 401(k) should be invested in stocks, with a smaller share in bond funds
I’m in my 60s, behind on saving and worried this market will never bounce back enough for me to retire. Should I move more to bonds?
The writers equivocate - no (stocks are cheap, bonds expensive), unless you're going to retire soon. Then you might want to safeguard some of your portfolio or even move some assets to cash.
No, so long as you can sleep at night. If you can't sleep, keep moving to cash until you can. Nothing else really matters.
There are a few around here that can remember 1987. I was a relatively new investor with deferred comp and back then you had so many restrictions on trading it, you were locked in. Whelp, in a year or so I was back to even. feh.
Geez, my wife was with Ma Bell, when the Iraq war broke out and the market puked. For her 401K at that time, they had a choice of 5 'in house' funds that you could only trade once a month effective the last day. feh, I used all her cash and bonds to buy all large cap market and sat it out.
It will come back. The only time you really need to be careful is when you're taking distributions from a fund and the principal takes a hit. This is where you have to be most careful. Otherwise, sit it out.
Comments
Yes, by all means. Be sure to let us know how that turns out.
https://www.nytimes.com/article/coronavirus-money-advice.html The writers equivocate - no (stocks are cheap, bonds expensive), unless you're going to retire soon. Then you might want to safeguard some of your portfolio or even move some assets to cash.
(Forget PONAX and PDVAX and such, down $500 plus or minus. DODIX and FTBFX down ytd $55 and $64.)
Meanwhile, SPAXX and FDRXX up $24 and $25, with FDMMX up $14.
FDRXX / SPRXX up a hair.
So you pays your moneys etc.
It's too late now to seek to preserve principle, or make gains, unless you have cash you think you can deploy wisely to some positive end.
You have to hope that your over-all economic plan is sufficient to get you through the shocks that do come.
If you have to sell in this environment you need to reevaluate your plan. And I hope you have time to right the ship.
If you have some cash to play with, you have it regardless of most of the advice that typically out there during good times. Congratulations.
I like to hold cash because I believe the central banks of the world have been fighting deflation since the dot com bust.
No, so long as you can sleep at night. If you can't sleep, keep moving to cash until you can. Nothing else really matters.
There are a few around here that can remember 1987. I was a relatively new investor with deferred comp and back then you had so many restrictions on trading it, you were locked in. Whelp, in a year or so I was back to even. feh.
Geez, my wife was with Ma Bell, when the Iraq war broke out and the market puked. For her 401K at that time, they had a choice of 5 'in house' funds that you could only trade once a month effective the last day. feh, I used all her cash and bonds to buy all large cap market and sat it out.
It will come back. The only time you really need to be careful is when you're taking distributions from a fund and the principal takes a hit. This is where you have to be most careful. Otherwise, sit it out.
and so it goes,
peace, and Flatten the Curve,
rono