Blunt question about 401k accounts

Question

Dow is at an all time high. We all know what happened the last time it hit this mark.

I'm not saying there will be a crash but a correction is coming.

Question: Should I move all my money out of equities to stable value funds and wait for the correction to get back in? I know I won't know when the correction will come, but a guess on the way down is better than losing all that equity on the way down as the market corrects.

I know we are dealing with decades in terms of time horizons because I am young, but why suffer the forthcoming loss?

Interest rates HAVE to go up and when they do, the Dow will take a nose dive.

Just looking for comments...

scalabrine · Answer

Dow is at an all time high. We all know what happened the last time it hit this mark.

I'm not saying there will be a crash but a correction is coming.

Question: Should I move all my money out of equities to stable value funds and wait for the correction to get back in? I know I won't know when the correction will come, but a guess on the way down is better than losing all that equity on the way down as the market corrects.

I know we are dealing with decades in terms of time horizons because I am young, but why suffer the forthcoming loss?

Interest rates HAVE to go up and when they do, the Dow will take a nose dive.

Just looking for comments...

wallstreetcappers · Answer

I would pull at least half from equity funds and put them in a money market..not a bond fund, a money market.If rates go up bond funds will get crushed, it is not worth the risk for a horrible yield.

CraigBuchanan · Answer

No. Trying to time the market is the fastest way to fail. (for the majority of your money) Unless you are willing to wait forever.... Sure liquidate a piece like Wall says but be prepared to wait a while and be disciplined dollar cost averaging to get back in. Don't try and time the bottom with it all.
I keep 50-75% always invested In a tactical allocation. And then actively trade the rest. Long and short

pinoy1da · Answer

maybe it will come down and then rebound. history repeats itself on the dow. just look at the charts

TRAIN69 · Answer

The problem I find with messing with my 401 is you cant predict a fall and then predict the bottom and then predict the upswing. So while waiting it out with your money safe, you will be missing out on gains and dividends. Trying to figure out it out is almost futile as obviously its super tough or there would be lots more rich people.

Blunt question about 401k accounts

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