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  • If you want real investment advice: no. If you're investing for retirement, and you're not near retirement age, you have decades ahead of you before you need these funds. You know those people who "lost everything" in the 2008 recession? Sure, some people lost their jobs and were forced to burn their retirement savings just to keep the lights on. But far more lost money because they sold when the market was in the toilet. The market did eventually recover, but the timing of the recovery couldn't be predicted in advance, so they lost out on much of the recovery. The market went back up, but they still had their 401k sitting in cash. They lost money on the dip, and then they lost money again on the upswing.

    Also, keep in mind that Trump's policies mean that cash savings will be far more vulnerable in this crash than in the 2008 crash. At least in 2008, the inflation rate was basically zero. Cash didn't lose much value just sitting in your savings account. But Trump is trying to weaken the dollar to make imports more expensive and US exports more appealing to foreign consumers. And Trump's policies are expected to be rather inflationary. Cash is no safe haven right now. You could try to move your assets to foreign currencies and companies, but this crash is global. The US set itself up as the linchpin of the global economy after WW2. If the US stumbles, everyone stumbles. The only country that won't be hurt much by this crash will be North Korea. But there really aren't that many investment opportunities for foreigners in the hermit kingdom.

    It sucks, but at this point you should just ride it out. If you still have decades till retirement, just ignore your retirement balance for the next few years. Just ride it out and remember that you're investing not for today, but for decades in the future. Or consider the parable of Bob, the world's most unlucky investor.

  • Wish I'd done it in January

    • I try to never ever ever ever think like that. I believe there are only two feelings that a stock market is capable of producing. You can either go "omg why was I so bearish? Obviously this was going to blow up. All the signs were there. I should have bet the house!" or "How could I have been so bullish? I shouldn't have put one bloody damn cent into that ponzi scheme. I'm such a fool." I don't believe there is such a thing as being satisfied with your choice of investment. The people who are often making life changing money are people with 100x that much money to begin with - I think a societally agreed upon mortal who invests and makes life changing money has succeeded the same way they might have succeeded in a casino.

23 comments