OK, so maybe that is pushing it a bit but things will definitely get better. The economy took a very strong downward swing these past few weeks and has everyone stressed that we are in for another “Great Depression” The reality of it is this happens about every 10 years or so. The economy takes a dip after record highs, and then goes right back up again.
That doesn’t mean I have to ride the downside of the tide, but I’ll definitely be riding the upside of it. It’s a bit disheartening when you look at your 401k and see that your rate of return is a negative 40%. So instead of pouring more money into a downed ship I decided to put a hold on what I contribute to my 401k until the market can work itself out. Then, it will be time to contribute heavily and get the most for my money. There is no guarantee that the money I contribute today, to specified funds and companies, will still be there. Let the stock market work itself out and then get back in when we know what is going to stay around.
Huge mistake. It is time to dollar cost average in now. Waiting for a market recovery will cost you profits.