01-08-2010, 03:56 PM
Im just letting it ride for now. I think we'll still have some upwards movement for awhile and then have another crash sometime either at the end of the year or early next year, maybe later. Basically, I don't have a huge amount of options with my 401k. Currently I have close to half in PIMCO Total Return (Bill Gross is God), and then 2/3 of the rest in an S&P 500 Index, and the rest in a Target Small Cap fund.
When I saw the crash coming in 2008, I moved a lot of money over into PIMCO to protect it, which worked out well. I lost only about 20% of my portfolio value when it was at its lows. Then in March I moved everything I had put extra into PIMCO, back into stock funds, and they had a great recovery.
I can imagine at some point towards the end of the year doing the same thing, and moving a lot back into PIMCO.
Here's a situation I imagine. Towards the end of the year maybe, or perhaps a tad earlier we start getting good unemployment numbers and the markets go ballistic, moving upwards quickly. Then, at some point later down the line all the government debt obligations start coming home to roost and foreign countries finally give up on buying U.S. Treasuries, which cause a panic in the markets and the whole thing crashes again, leading to massive inflation and the death of the dollar as the reserve currency. Fun times ahead!
When I saw the crash coming in 2008, I moved a lot of money over into PIMCO to protect it, which worked out well. I lost only about 20% of my portfolio value when it was at its lows. Then in March I moved everything I had put extra into PIMCO, back into stock funds, and they had a great recovery.
I can imagine at some point towards the end of the year doing the same thing, and moving a lot back into PIMCO.
Here's a situation I imagine. Towards the end of the year maybe, or perhaps a tad earlier we start getting good unemployment numbers and the markets go ballistic, moving upwards quickly. Then, at some point later down the line all the government debt obligations start coming home to roost and foreign countries finally give up on buying U.S. Treasuries, which cause a panic in the markets and the whole thing crashes again, leading to massive inflation and the death of the dollar as the reserve currency. Fun times ahead!