Hedging 401K accounts

Discussion in 'Trading' started by Cuddles, Feb 25, 2020.

What's your strategy

  1. Hold through a crash

    4 vote(s)
    44.4%
  2. Cash out

    2 vote(s)
    22.2%
  3. Switch instruments

    3 vote(s)
    33.3%
  1. Deez

    Deez

    It truly is time not timing and nothing beats dollar cost averaging. Just try tweaking it a little. Corporations are always going to earn a profit with is why indexes will always rise at or above the rate of inflation.
     
    #21     Feb 25, 2020
  2. Cuddles

    Cuddles

    Found a few "short" mutual funds ($GRZZX)....I generally don't rotate my choices since there's restrictions, but will buy into others depending on what I'm seeing. I suppose I could rotate to short or bonds in the interim.

    To be clear, I'm still contributing regardless, the question is whether to stay solvent (which I'm allowed to) or put it into long-term funds (with the way the market's heading)
     
    #22     Feb 25, 2020
  3. Deez

    Deez

    Any 5 year period you’re 90+% likely to be up. Any 10 year period you have essentially a 100% chance of being up on that initial investment. Average correction lasts less than 18 months. Sounds like you may have 30 day restrictions on trades placed so must be nimble with shorts. You can go short I just wouldn’t allocate more than 10-15% of portfolio in short term speculation. If you think near a top a balanced fund goes 60-40 equities to bonds down to 40-60. So those also can take risk off at the top. Just a matter of being smart with dollar cost averaging contributions and asset allocation. Avoid the all or none way of thinking in a retirement account
     
    Last edited: Feb 25, 2020
    #23     Feb 25, 2020
  4. gmal

    gmal

    #24     Feb 25, 2020
    Cuddles likes this.
  5. gmal

    gmal

    Expected returns are higher when the markets are down a lot.

    That being said investors are always braver at the top. If the markets are down 80%, then it has to go up 500% to break even. After depression in 1929, it took close to two decades before markets regained its original level.

    Dollar cost averaging helped the investor who were young and kept on investing. But due to sequence of risk, retiree at the beginning of depression died eating cat food
     
    #25     Feb 25, 2020
    TooEffingOld likes this.
  6. dozu888

    dozu888

    you did explain it to @Here4money like he is dumb lol

    earnings yield has nothing to do with dividends... the idiot actually bot it lol.
     
    #26     Feb 25, 2020
  7. Deez

    Deez

    Dividend and earnings yield is the same concept. Earnings yield doesn’t mean dick anyways because it depends on interest rates. But you already knew that right Warren?
     
    #27     Feb 25, 2020
  8. Cuddles

    Cuddles

    [​IMG]
     
    #28     Feb 25, 2020
  9. dozu888

    dozu888

    lol a pair of idiots...
     
    #29     Feb 25, 2020
  10. Deez

    Deez

    And no not this Warren:
    417E2D7A-9BCF-4F21-BD19-4DF3D220B2AB.jpeg

    This Warren:
    14B14DF1-D5E8-45E5-B140-DEEC78BEA6FA.jpeg
     
    #30     Feb 25, 2020