Hi Jim,
>>Jack, if you were 30 years old and had all of your 401K, IRA money invested in the stock market, would
you really be worried right now?
It's an interestng question, because I was about 30 when I made an extensive study of the market trying to decide what to do with all the money I had in the world (cash from home sale before going in the service). We were in the midst of the 60s mutual fund mania then, and I definitely feel the erie d‚j… vu sensation as I observe the similarity to the current (in my interpretation) mania. We were in a "new era" then, the pundits told us, and historical valuations didn't matter. So I entered and observed the 1969 dip, and lost about 30% before getting out. Then I watched it bounce (just like after the 1987 dip), and then observed from afar as the early 70s bear market gripped the investment community and held it prisoner until ?1982.
So, if I were thirty and had not experienced the above, maybe I'd leave the money in the market. With the experience, however, I would advise a 30 year old to lighten up on equities and run the risk of being out of the bull market for a while. By the way, I gave my son (age 30) this advice, and of course he hasn't paid any attention to me.
Jack |
