Open Question: Is it foolish to move 401k money around within your plan based on how the economy and stock market is expected
to behave?
This recession was obvious for months - all kinds of horrible things happening.
Normally i don't move my 401k money around, because it's usually impossible to time the market. But this economy has nowhere to go but down, and so i moved most of my money into cash.
If you lose 50% of your portfolio, you have to gain 100% to get back even. That scares me.
I have 25 years till retirement, but i still hate losing money.
I don't have any trading fees either, and it's all tax deferred.
Also, I'm not adding any to my 401k, because i'm unemployed while i'm back in college.
Should i just let the market ravage my savings, or is it ok to park it in cash for a while, until the economy is better?
