No. of Recommendations: 2

You wrote, If I know/think(lol) that the market is gonna drop significantly is there a way I can protect my 401k from taking a beaten? Sell and buy some other fund etc? Thanks

As I see it, you can:

1. Move into cash / money market,
2. Move into a defensive / contrarian investment, or
3. By puts against a market index (this is similar to buying insurance).

Personally I'd be inclined to move some of my riskier assets into cash and look for contrarian opportunities while everyone else panics...

You can also just opt to ignore the drop, but that isn't a protective strategy ... even though it might be the more successful one long-term.

- Joel
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.