Market Commentary for Q4: What It Means for Your 401(k)
There’s no denying the 3rd quarter wasn’t pretty. It culminated in one of the worst Septembers in a long time with the worst Dow performance for a month since 2002, and the worst S&P 500 performance since 2008.
Times like this are when you have to guard against making emotional decisions and try to transfer those decisions from your heart to your head.
The best way to keep a level head is to look at the numbers and historical data – and look beyond the current cycle.
Check out the video as Mark Sorensen, our Chief Investment Officer, provides a deep dive into what’s happening in the market…and shares what you need to be aware of in the next few months.
If you are concerned about current market conditions and your 401(k), you aren’t alone.
Times like this are unnerving to investors – and rightfully so.
But we encourage you to remember that, historically, this is the time of year when the market does bottom. Extreme pessimism is when a new bull market, uh, actually begins.
If you still have several years of work ahead of you before retirement, think of this as a time of opportunity.
Be grateful the market is down because you are able to buy more shares right now with the same amount of dollars that you were buying when the market was higher.
That is called dollar cost averaging: Buying more shares when the market is lower and less shares when the market is higher. This is what builds wealth over time.
Also, if you are rebalancing every quarter, you will be able to better manage your risk and ensure your 401(k) is working for you.
This is what we do for clients at 401(k) Maneuver.
Investors who participate in our account management program know we’re working for them to manage downside risk to minimize losses and increase their account performance – despite the down market.
Our goal is to keep you in what is working and out of what is not. It’s that simple.
With 401(k) Maneuver, you can go about your life doing what you love with confidence, knowing we are managing your 401(k) for you.