This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Time to Go to Cash in Your 401(k)?

You can see from the screenshot above that this is still very much a risk-on market, with precious metals, small-caps, mid-caps and emerging market debt at the top of the heap. This is good information to know and to stay on top of in coming weeks and months as it relates to your 401(k) allocations. You can follow me on twitter @billgunderson for changes.

Now let's look at the bottom of the asset class pile:

Data from Best Stocks Now App

When the referee untangles the pile and finds out who is that bottom, he finds inverse funds, the Green Bay safety, and more importantly short-term Treasuries (stable value). Being bearish on the market or sitting on the sidelines in cash has been the worst place to have your money allocated!

I know that your doomsday newsletter tells you that inflation will go through the roof and that you should not touch the stock market with a 10-foot pole, but that has not been very good advice for the last several years. Listening to these doomsayers has been worse than the NFL ref strike-unless you are a Seattle fan.

The S&P 500 is up about 16% year-to-date. You have to make hay in the market while the sun is shining. Missing out on a 16% run in the market is a big setback in a 401(k). Furthermore, the Nasdaq is up almost 22% so far this year and small-caps are up about 15%.

Risk-on has been the place to be. I have kept my followers there for three years now.

How is sitting in cash working for you? I reminded you again back in June of this year that cash was the worst place to be. Did you listen to me?

How about that inflation trade? If inflation was so rampant then Treasuries adjusted for Inflation would be a great investment right now. Let's take a quick look at how they are performing:

Data from Best Stocks Now App

As you can see, TIPS have gone nowhere over the last five years and have underperformed equities by a wide margin over the last 12 months.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 -2.67%
FB $104.07 -5.81%
GOOG $683.57 -3.45%
TSLA $162.60 -7.26%
YHOO $27.97 -4.05%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs