Timing The Market Is Always a Bad Idea, Right?
December 4, 2012 8:42 AM Subscribe
I know timing the market is stupid. My previous attempts at it have never worked out in my favor. My 401K is all index funds. However, with the possibility of Congress going over the 'Fiscal Cliff," it is a horrible idea to go all cash until they get it sorted out?
posted by COD to Work & Money (23 answers total) 1 user marked this as a favorite
It seems to me the market still believes they will do something, and if they don't we could see a dramatic short term drop. Given that the downside of doing nothing is a potential 10-20% loss of value versus the upside being basically the status quo, I'm not seeing much to argue against going super conservative until a budget deal is in place.
It is matters, I'm 30% total market equity, 20% Intl equity, 20% REIT, 30% bonds at present. That is a little conservative for my age, but I like it that way.