- Joined
- Apr 12, 2014
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So it should be 12-14k because some guy on sherdog says so, meanwhile the entire working class of america is buying at 20k without even realizing it.
Dont mean to be rude you are a good poster, but theres alot more to valuating stocks.
If its 12 to 14k on the index where is your argument to the working class of america to not only stop putting money in their 401k but sell (at a penalty) instead
And if they do follow your advice and sell their 401k, where do you suggest they put the cash? Just keep it in cash, gold?
Lets assume i just sold my retirement just now
Tell me what to do with the cash.
I'm not trying to answer for the other poster, but stocks are overvalued for some of the very reasons you listed; a real estate credit crunch and abysmally low bond and money market yields made the market the only good place to put money. Lack of options drove demand for stocks. Just because the market is due for a correction doesn't mean your average middle class investor should liquidate his 401k. Unless I was retiring in the next few years, I wouldn't worry about it. If I was, I'd be liquidating a lot of my 401k into cash and bonds.
IMO for the long term investor, it is very prudent to diversify; stocks, money market, gold, real estate, and hard assets; I allocate towards all of these.