
Originally Posted by
cprenegade
The market tank was one of the best things for my 401k. After the first big drop, I switched 100% to the fixed interest fund. Then, after the bottom and the market started to climb again, moved it back to stocks. My 401k is actually ahead of where it would have been had the market simply continued to grow at its slow but steady rate. If you waited until the market was near bottom, shut down, and then waited until recently to jump back in, you absorbed all of the decline and none of the rebound.