401k-Holding fast but..........

[airbiscuit]

It will go back down until the next sugar high of bailouts to corporations.

 

[riptides]

It will go back down until the next sugar high of bailouts to corporations.

The FED was pumping money into the economy. Print mo money. Print mo money.

When that debt comes a calling, it will be chilly times.

 

[Diggin It]

It will go back down until the next sugar high of bailouts to corporations.

I predict it will be back up by November.

 

[RickB]

November 2026. But I hope you are right and not me.

 

[newbury]

When the beneficiaries are millionaires, billionaires and massive corporations the term bailout is appropriate.

Socialism is associated with the less affluent masses.

We have foolishly mortgaged our future for generations for unsound reasons during prosperity. Now we will compound that debt out of dire need. It is hardly a laughing matter.

But the millionaires and billionaires know how to spend it, us peons just waste it on food, healthcare and housing.

 

[JerryK]

But the millionaires and billionaires know how to spend it, us peons just waste it on food, healthcare and housing.

Me, as soon as I heard I was getting money your grandkids will pay for, bought a 15' metal cut off saw, shiny new plasma cutter, and some assorted other stuff... THANKS .. !!!!! [ I wanted to upgrade my stash before Amazon ran out of goodies ]

 

[Jstpssng]

I've always found that it takes 3 times as long to recover than it does to get behind. The longer they kept kicking the ball down the court with artificially low interest rates and increasingly higher national debt, the longer it will take us to recover.
My 401K has dropped 16% in the last 2 weeks but I know it will come back. I'll just have to push my retirement date back a while longer... to 85 instead of 83. Next week I am going to increase my contributions by 25%. I would like to put in more, but need to plan in case I find myself in the unemployment line before the current downheave is over.

 

[KennyG]

November 2026. But I hope you are right and not me.

My guess is it mostly recovers by the end of the year. But I have enough in fixed income and stable value investments to wait it out for almost 10 years, so I'm not worried.

 

[RickB]

My guess is it mostly recovers by the end of the year. But I have enough in fixed income and stable value investments to wait it out for almost 10 years, so I'm not worried.

Me too, but I couldn’t resist expanding 3 stock holdings at 2015 prices.

 

[MinnesotaEric]

I predict it will be back up by November.

I tend to agree.

Reasons:

1) the recessionary two or three quarter pullback will be largely priced into the market.
2) more banks will follow Bank of America to forgive missed payments by those out of work Americans and just tack those missed payments unto the end of their loans. Sounds altruistic, but BoA doesn't want piles of bank owned real estate and knows from experience how long it takes to get rid of depreciating assets.
3) of the four existing drugs that may help symptoms, all of them are being fast tracked and I believe one or more will be known to blunt the impact of China-Wuhan-Kung-Flu-CORVID-19-Coronavirus by fall.
4) Through the activation of some of the War Powers Act, America companies are switching to making the medical supplies we need en masse and I expect the first of these supplies will become available in fall.
5) By fall Americans will be wary of sitting at home getting nothing done and more eager to get out. There will be considerable demand once we can all go and wonder about again.
6) I anticipate something of a U-shaped recovery, but we will not reach the preexisting highs of January-February 2020 until the Millennial Generation is in their 50s because of redemptions from retired boomers living off of their investment savings which peaks at age 73 on average.

Anyway, by Fall I think we'll all be a little more optimistic if not grounded realists.