Time to Go to Cash in Your 401(k)?
Now, I am not saying that inflation will not rear its ugly head at some time in the future, and I am not saying that what Bernanke is doing is not dangerous; I am just showing you what the market looks like today. If you invest way out in front of a cycle that you think is out there, you can miss out on returns like we are seeing right now.
That can be very costly.
As a professional money manager, I have to take investing one day at a time, one stock at a time, one month at a time, one sector at a time, one year at a time and one asset class at a time.
I also have to be very vigilant for the changing market cycles. I have been fully invested since the S&P 500 low of 666 back in March of 2009. That has been the right place to be. I don't know how you have been invested. As I said earlier, you can follow me on Twitter or you can follow my weekly newsletter for any changes in my current stance.Just as sure as I am sitting here today, there will be another bear market at some point in the future. Is it time to sit this one out and move your 401(k) to cash or more defensive sectors? Not yet. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV