Monday, December 24, 2012

Market timing: Not a good retirement strategy | Synopsis

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Market timing: Not a good retirement strategy

The Green, Burnham Market - War memorial - First World War
The Green, Burnham Market - War memorial - First World War by ell brown
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Excerpt:

I've been working for five years now and save religiously for retirement. But I feel that I've begun investing at a bad time for the markets. Most of all I worry about what will happen to my 401(k) if the market tanks again. Am I right to be concerned? -- Aaron, Nashville, Tenn. It would be nice if I could assure you that the market gyrations that have spooked investors recently and over the past dozen years -- i.e., stock prices dropping by 50% or more in 2000 and 2007 -- aren't likely to occur again. But I can't do that. If anything, recent research shows that these sorts of gut-wrenching episodes -- while not exactly the norm -- are likely to occur more frequently than we previously believed. So I can virtually assure you that over the course of your career, the market will tank many times.

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T. Rowe Price

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StateOrCounty: Tenn

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Disambiguation: Location | PoliticalDistrict | AdministrativeDivision | GovernmentalJurisdiction | USStateReferences:

City: Nashville

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FieldTerminology: recessions

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