I decided after the over 1800 point drop in the Dow, I would lighten up on my equity holdings when the market rebounds. I wanted at least a one third rebound and we almost got that on Tuesday with a 567 point rebound.
Today, I checked the market around 3:20 pm and saw the Dow was up over 180 points. I had my one third rebound so decided to re-balance my 401(k). In order to get today's price this had to be done before 4:00 pm so I went right to my computer and went right to work.
Basically I went from 22% in Stable Value to 30% and increased my inflation adjusted bond holdings a little. I then adjusted my stock funds down some. When I was done I checked the market again and in that little while the market was only still slightly up. By 4:00 p.m. the market was actually down. I was surprised to see such a big swing.
I still have a lot of equity holdings, but at least my 401(k) is more in line now with what it should be for my age.
Everything I read says this is only a bump, I hope they are right. I got burned in 2008 and don't want it to happen again.
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