To me, they are just locking in their losses and with the inflation rate, they are just going to lose more if they have cash positions.
At least if they hold tight, they will be in position to ride it back up, even if it's years later.
Stolen elections have consequences.
“A lot of people at my work are converting their 401k’s out of stocks. To me, they are just locking in their losses and with the inflation rate, they are just going to lose more if they have cash positions.”
I’m with you. It’s not especially fun to see your balances dwindling, but the stupid money buys high and sells low. And that’s what we’re witnessing. The smart money rides it out. The market might take a year to bounce back... or 5 years ... or 10 years, but when it does, you’ll eventually be glad that you didn’t sell into the bear market.
actually, might depend on their age as well.
If they are close to retirement...they might be thinking they do not have years to gain it all back.
Lots of boomers in the market and the overall economic feeling is not good.
It could be viewed as a buying opportunity.
At least if they hold tight, they will be in position to ride it back up, even if it’s years later.
After the Crash of ‘29, the Dow didn’t recover to its previous high for 25 years.
>A lot of people at my work are converting their 401k’s out of stocks.
That’ll explain the dump today right there.
I think my DRIP stuff paid today so it’s buying more at this price point.