Originally Posted by
Nightsky
Yeah, the pain is just starting. I honestly don't know what to do with my 401k. It's of course dropping like a fly, and I'm tempted to re-allocate everything into low risk funds - but then again I'm young and need to learn to ride this crap out.
<confused>
Also - any bets as to how the airline industry will look in a year or so? I'm thinking a lot of people are going to be put on the street. Make those backup plans if you haven't already. It's going to get very ugly!!
I honestly don't know what to do with my 401k. It's of course dropping like a fly, and I'm tempted to re-allocate everything into low risk funds - but then again I'm young and need to learn to ride this crap out.
You said it best in the last part of your quote that I have boldfaced. Do exactly what you typed - ride it out. The market does not like fear and uncertainty. The biggest thing everybody is waiting for right now from D.C. is an answer. Regardless of whether the bailout is approved or not, an answer will provide the market with the type of playing field it will have and thus will react accordingly. The uncertainty is creating some fear and that fear is affecting the market. That is why we saw it drop 777 points today.
10 years from now your 401k will still be intact and it will be worth a lot more than it is today. It goes down and comes back up. Over the long haul your ups far outweigh your downs and you will come out ahead. Not just my opinion, but a fact based on historical data. And with a 777 point drop, the market still closed above 10,000.
Also - any bets as to how the airline industry will look in a year or so?
I wish I knew. This industry is so sensitive to just about anything, that it's stability is unpredictable in both good and bad financial seasons.