Posted on 08/08/2011 5:55:42 AM PDT by NowApproachingMidnight
Greetings fellow FReepers,
What are the financial gurus thoughts this A.M. on the markets and the Obama-downgrade? Should our 401Ks be in Stocks or Bonds, both, what split?
I am with Fidelity, just looking to balance my profile before start of trading.
Dually noted.
I transferred everything to money market in early May. I should be all right unless the dollar crashes.
bfl
The only downside is that it takes 90 days to get the funds back into the market...but at least it's relatively safe while the market figures out what it's going to do.
What is bfl?
Ditto - we’ve been in cash for four weeks and counting. Missed a little of the run-up to 12,600, but missed ALL of the downfall.
Personally, I went to all cash (!) when the DJIA was at 12,100.
I am going to go back into equities when the DJIA hits about 10,200 or so.
Don’t know if I am going to do anything different b/w now and then. If it doesn’t go that low, then, personally, I’m going to stay in all cash until the beginning of the year. (I just figure October is going to be bad no matter what. It always is....).
Do Nothing....this too shall pass.
By the way....personally, I wouldn’t change anything today, unless you are buying. Don’t see along with all the other panickers!!!
bump for later (reading)... :o)
I saw one or two point out - YOU CAN’T TRADE MUTUAL FUNDS TO AVOID THE DAY’S DROP!
Mutual funds trade after the market closes, so you get whatever happens today even if you sell this am.
Good luck.
That is exactly right. I think it wise to assume that anything one does today in a 401k is going to get what today brings about. (So if you do something today, that would mean BUY...but not sell).
As you can see, the selloff has not been total panic. Depending on what you own for stocks, I might hold off a bit on bailing out at this point.
Stocks, themselves, have been performing pretty well. You might was to look at diversifying into some gold stuff, and some higher yielding stocks.
Of course, time frames and risk issues are always something you should look at.
I agree, buy at the bottom, sell at the top. Check out OCZ, which should rebound nicely.
CASH!
I am waiting to pull the trigger on a Chevron buy at $90.
About four years ago, when I was managing my (now both gone) parents' portfolio, I went against the advice of their Charles Schwab rep and liquidated ALL the 'blue chip' stocks and put it into cash......I got sick and tired of watching the volatility of the monthly statements - down thousands one month, up hundreds the next - due to the expenses involved with 24 hour caregivers.
This 'stupid move' probably saved them close to 200K and prevented having to sell their home to keep 'em going.
Earning nothing beats the sh*t out of losing tens of thousands.
I asked my stockbroker this morning what I should shift my investments to due to this recent downgrade and market volatility. He suggested beans, bullets, and bandaids. ;-)
a really good strategy on that is to pretty much do the OPPOSITE of what I usually do.
(this time, though, I got out just in time....for once).
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