401(k) Recovery: Seek Safety NOW

In the aftermath of the derivatives-fueled financial crisis of 2008 a recovery seen in a rebounding stock market predictably ensued. Yet there still is good reason to doubt last year's crisis was in fact solved. Postponing resolution of profound financial and economic imbalances really is no solution at all. The risk of a spectacular, systemically threatening collapse following on last year's difficulty remains very real. So, ready yourself.




Are you prepared if the stock market resumes falling? If so, then five years from now your 401(k) savings should be swimming in the green while others see their net worth sinking in a sea of red.





Shocking! The widely quoted Dow Jones Industrials Average could fall to 3600 tomorrow and still remain in a long-term uptrend. Of course, nothing is set in stone, but a devastating blow like this might happen as soon as later this year. Will you be ready to gain great financial advantage when it does?

In the simple matter of managing your 401(k) the time for Plan B is upon us. Sheltering savings in the safety of a money market fund, now, allows you to sidestep any approaching disaster.

Opportunity awaits those who, today (and always), avoid risk like the plague. The view expressed here is founded on the timeless wisdom of employing 200-day moving averages in a strategy for managing your 401(k)'s investments. The S&P 500's 200-day moving average continues falling in spite of the stock market's recovery since March.

Due caution is well-advised by the possibility an outlier of profound consequence could suddenly develop. Realizing the depth of fraud that has been allowed to run rampant in both the private and public sectors, Plan B, indeed, appears a most reasonable posture here.