8/18 Dow down 400+, trying new 401k strategy

  • Thread starter moejoe15
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In summary, the speaker has been considering a new 401k strategy after selling out when the DOW was around 12000. They are now thinking about getting back in on down days, 10% at a time. They also mention the success they have had with investing in oil, particularly BP. The speaker is open to comments on their strategy and the current state of the market, believing that the economy is in a bubble that will eventually fall apart.

Where do you think the DOW will be in the next few months?

  • 14000

    Votes: 1 12.5%

  • 13000

    Votes: 1 12.5%

  • 12000

    Votes: 3 37.5%

  • 11000

    Votes: 2 25.0%

  • 10000

    Votes: 2 25.0%

  • 9000

    Votes: 3 37.5%

  • 8000

    Votes: 1 12.5%

  • double dip recession is coming

    Votes: 5 62.5%

  • no double dip recession

    Votes: 2 25.0%
  • Total voters
    8
  • #1
moejoe15
8
0
I've been contemplating a new 401k strategy since I pulled out a couple weeks ago. As I write this the DOW is down to just below 11000 again. Trying to call a bottom is dangerous but I find it hard to believe it's going down much lower than that. Luckily I sold out when it was around 12000 and avoided a coronary.

I've been thinking about getting back in on down days 10% at a time. I just moved 10% back this morning which gives me 9 more down day moves. Anybody want to comment on this strategy and where they think the market is headed in the next few months or on a new recession?

Oil has been good to me the last couple months with my personal stocks. I've bought and sold BP 5 times making 3% plus each time. The easiest way to fight the cost of gas is invest in oil and BP is a bargain. I wish I had bought it when it was at its bottom.
 
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  • #2
moejoe15 said:
I've been thinking about getting back in on down days 10% at a time. I just moved 10% back this morning which gives me 9 more down day moves. Anybody want to comment on this strategy and where they think the market is headed in the next few months or on a new recession?

If you are able to purchase stocks for less than you sell them, then you will make money. If you continue this strategy you will make infinity dollars.
 
  • #3
i voted double dip recession, although i don't think it's a double dip recession.. it's more like one giant dip with a bunch of fake wealth infusions. this whole bubble economy will fall apart without the central banks constantly printing money
 

1. Why did the Dow drop over 400 points on 8/18?

The Dow Jones Industrial Average (Dow) is a stock market index that measures the performance of 30 large, publicly-owned companies in the United States. On 8/18, the Dow dropped over 400 points due to a combination of factors such as rising tensions between the US and China, concerns about the global economy, and a decrease in consumer confidence.

2. How does the Dow's performance affect my 401k?

The performance of the Dow can have an impact on your 401k if your investments are tied to the stock market. A drop in the Dow can result in a decrease in the value of your 401k, while a rise can lead to an increase. However, it's important to note that your 401k should be a long-term investment and not be influenced by short-term fluctuations in the market.

3. What is a 401k and how does it work?

A 401k is a retirement savings plan offered by employers to their employees. It allows employees to contribute a percentage of their salary to the plan, which is then invested in various stocks, bonds, and other assets. The funds in a 401k account grow tax-free until the employee reaches retirement age and starts withdrawing the money.

4. What are some new strategies I can try for my 401k?

One strategy you can try for your 401k is to diversify your investments. This means spreading your money across different types of assets, such as stocks, bonds, and real estate, to reduce risk. You can also consider increasing your contributions to your 401k, especially when the market is down, to take advantage of buying stocks at a lower price. Another strategy is to regularly review and adjust your 401k investments to ensure they align with your retirement goals and risk tolerance.

5. How does being a scientist relate to my 401k and the stock market?

Being a scientist can give you an advantage when it comes to investing in the stock market and managing your 401k. Your analytical skills and ability to gather and interpret data can help you make informed decisions about your investments. Additionally, your understanding of the scientific method can help you approach investing with a logical and evidence-based mindset, which can be beneficial in a volatile market.

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