Quote:
Originally Posted by kepp
But if you can time the correction fairly close and change over to bonds until it hits bottom, and then move back over to aggressive funds, won't you get much more from the recovery? I know...lots of 'ifs' in that, but if you can work it...
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That rarely works and should never be done for those in the accumulation stage. Those 10 years or less from retirement might do what you’re suggesting though. If you don’t meet that criteria, you’ll likely lose more in preparation for a downturn than actually riding out equities.
People talked about moving money and an impending correction around 20 in the Dow. People did move money. Here we sit at 26. Those people missed 30% gains.
Timing the market in retirement accounts isn’t worth it. Decide on your allocation preference and rebalance 1-2x per year.