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hardnox
Advisor

those 401 k 'ers

I was on a cruise for a couple weeks, the crowd was probably 75% retired.

 

I'm sure that many have seen their account balances grow over the last 15 months a lot more than withdrawals, cruise tickets included.

 

As news of the market gyration filtered in I did a lot of listening and a little conversing. It seems that virtually are were convinced that the recent levitation was entirely normal and simply reflective of excellent policy. Not much worry expressed.

 

Could be, "in the long run." Or not.

 

 

 

 

5 Replies
bruce MN
Advisor

Re: those 401 k 'ers

They’ve been in long enough now that the quarterly or semi meeting across from

the desk with that reassuring “such a nice young person” at Edward Jones it has generated a bit of dogma?

hardnox
Advisor

Re: those 401 k 'ers

Oh, I'm sure, and also a degree of politicization among many as well.

 

The notion that even if the future fundamentals look bright it is altogether possible that the market has already priced the best case scenario in* is a foreign concept.

 

The difficult thing in the present moment is that, in the past, a disciplined re-balancing between stocks and bonds kept you whole through the downturns. This time, both stocks and bonds are going down so there was nowhere to hide except for low yield cash instruments, which very few are willing to accept.

 

hardnox
Advisor

Blame Barry

or maybe more accurately Ben n' Janet or really the whole global central bank lot of 'em.

 

But the ultra low rate era always was a game of Russian roulette for the retirement crowd as it tended to push people into riskier assets than their age would typically dictate.

 

So far so good, though, even if 10% just got lopped off from the paper peak.

 

If there's a reason to be long term bullish stocks it's probably that nothing in the present setup works without asset inflation so any government will desperately seek to prop them up. As GWB and Co. did in 2001 and BHO in 2009.

Generally to the detriment, or at least ignoring the larger economy.

bruce MN
Advisor

Re: those 401 k 'ers

Foreign stocks always a catchy “balance” tune.

 

Check them out this week.

 

AllenJwi
Senior Contributor

Re: those 401 k 'ers

Don't you work anymore? Born in 1958 you should still have a job of some sort.