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I have a 401k plan from a previous employer. I'm no longer contributing to it, but I am able to re-distribute the existing funds as I like. I am currently happy with the funds available.

Anticipating that the "general" population of investors will choose to take a low-risk stance during the millenium transition and pull out of the stock market, I am considering re-distributing the funds of this 401k into Money Market Funds. I feel like I would be more comfortable with the risk(little to none) of a Money Market Fund.

Is this a rational thought?

I realize that a consequence of this decision could be that although I potentially miss the down-side of the market, I could also miss the up-side when a recovery occurs.
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Greetings, Munichiello, and welcome. You wrote:

<<Anticipating that the "general" population of investors will choose to take a low-risk stance during the millenium transition and pull out of the stock market, I am considering re-distributing the funds of this 401k into Money Market Funds. I feel like I would be more comfortable with the risk(little to none) of a Money Market Fund.

Is this a rational thought? >>


While I don't foresee the disaster you do and would not do this myuself, it's still a rational thought. You're the one that has to be comfortable, so if that move gets you that way, then it's the right thing for you to do.

Regards....Pixy
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I have a friend who is considering pulling all of his money in stock, etc.. and turning it over into gold. 

I think that's a little paranoid, but could he have the right idea?
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Greetings, Misterioso, and welcome. You asked:

<<I have a friend who is considering pulling all of his money in stock, etc.. and turning it over into gold.

I think that's a little paranoid, but could he have the right idea?>>


If that's what he wishes to do, then it's right for him. Given the historical rate of return on gold versus that of stock, I consider it rather an over-reaction on his part. However, he's the one who needs to make the decision for himself based on the risks he's willing to take. Obviously, he thinks metals will be less risky than stocks at the start of Y2K. Perhaps. But I think he's in for a very rude shock.

Regards….Pixy
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I think that's a little paranoid, but could he have the right idea?

No.
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Gee, if enough people "pull out", it may become either a self-fulfiling prophecy or a tremendous buying opportunity.

It could be real interesting, but I just do not know which way to play it.

DHatch

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