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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

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.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 -12.72 -0.08%
S&P 500 1,875.39 -4.16 -0.22%
NASDAQ 4,126.9670 -34.4910 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs