Over 9000 on the Dow Jones! Is your Retirement Looking Better?
It is hard to imagine the kind of volatility and economic turmoil that we have had over the past year. Giants like Merrill Lynch and Lehman Brothers are gone, AIG and GM are owned by government, and Citigroup was trading under $1 a share at one point. However, after dropping down to 6440, the Dow Jones Industrial average is back over 9000. Twelve months ago, you would have thought that we would be crazy for celebrating a DJIA at today's level. The question would now be, "Is your 401k, 403b, or IRA, looking better?"The Dow Jones Industrial Average's Wild Ride
The Market Crash and your 401k or IRA?
(Rewind to this past Spring) If I have seen it once, I have seen it a dozen times. The stock market tanks, investors run screaming for the hills, and they leave their 401k statements on the counter unopened. However, they tend to do one other thing before they leave. One quick call to their 401k administrator, or with one swift stroke online, investors make the "safe move" and liquidate all of their positions to move into cash or money market funds. Typically, this is probably the largest and most obvious buying signal for the financial markets....when everybody else is selling out due to an imminent financial armageddon.The Stock Market Bounceback, and Seller's Remorse
(Fast Forward to Current) Today, the Dow has broken back above the 9000 level. There is crazy talk about housing starts increasing, Ford has announced a 3 billion dollar profit, and American General is trading for nearly 13 dollars a share! Times are good again!Investors who sold out of their retirement assets at DOW 6500 certainly do not want to miss out on the remaining imminent rally. After all, the all time high of the DJIA is around 14,000, nearly 65% above the current market positions. I sure don't want to miss out on that 65% gain, especially since my retirement account is still 1/2 of what it was a year ago. Hold on to your seats, I am going back into the Stock Market, full bore!
