Call me stupid (and maybe I am) but this little downturn has me not in the least concerned.
Been on this earth for too long, seen it before, been there, done that. Even today, there are a lot of other factors that used to be not around as much.
Anyway, heck, I didnt reduce my exposure the week the of the"correction" I increased it, not only that but on Saturday I increased my 401k contribution.
Here is why (personal opinion, no right or wrong, not preaching to anyone)
1. Markets are currently valued high and there seems to be a new historical high in the way companies are valued, bottom line, there is an endless supply of 401k and Roth money from corporate employees flowing in, its a non stop input and the money goes mostly into stock funds, stock funds must invest the money and can not hold cash no matter what the market is doing. Its an endless supply entering every minute of the day.
2. We just corrected 10% I can not for the life of me believe Corona is going to affect any company more then 10% of their profits and quite honestly, except for the temporary physiological impact on the consumer (if any) I think soon in the short term Corona will not even be on the radar.
I mean, we already have Tim Cook saying their factories are now back to being fully staffed.
3. Sooner or later, the market rebounds, over the last few decades it rebounds faster then ever because of the never ending supply of money from 401k's
To me, there isnt any danger and I am not the least concerned. If the market doesnt rebound, well then we will just be like Japan for the last TWENTY five years and go no place. If so, well then, game over, it is what it is, for me, my retirement or well being is not tied up in the market but dont get me wrong, its a nice plus to have.
Diversification is key.
It will be an interesting week, personally? I think this will all blow over in a matter of days rather then weeks, but no one knows ever for sure.
Ok, one pet peeve for some people (now I am preaching
)
You cant lose money in your 401k because you never had the money, so dont cry about it.
When you see your 401k doing so well its called an unrealized gain, why? because you never took the money out and the money doesnt exist until the day you get it.
When you see your 401k doing really bad, same deal.
Dont get me wrong, its suc** to be down but dont be upset because you "lost money" you never had the money, your rolling the dice and hoping that the day you go take it out its there.
If that concerned people can invest in their 401k in REAL property, if you cant touch it, its not real, real estate is an option for some and boy there is nothing like the word "real" not imagined, not on paper but something you can stick a shovel into.
In the meantime, hang tight, Im not saying it cant get messy or worse, just is my state of mind and glad my wellbeing does not exclusively belong to the stock market.
Because one thing for sure, moving into the future, the Fed printing so much money, the Fed again, borrowing so much more, soon, using interest rates to stimulate the markets will be gone, we have gone from 7% to 2% in good times, leaving almost nothing left to reduce except the other 2% down to 0, then what? Yup
Just one other thing, the market climbed so rapidly this past year, this decline has only brought us down one year to 2019 levels.
Anyway, anyones guess it as good as mine, I have no idea what will happen, just an excuse for what I am doing, so flip a coin and lets get going *L* Heads is yes, Tails = no
Think about it, it took TWENTY FIVE years for Japans stock market to get back to its levels of 1990 proceed with caution, anything can happen, me personally, I could be very wrong, but think we have no place to go but up. Good news is, Im not heavy relying on the markets performances where it makes it or breaks it for me so I take anything I say with a grain of salt or less.