Retirement Planning After A 401K Crash

While the risk of a crash is not zero, you’re almost certainly more worried about a crash than is justified. The effect of the crash on the population average of subjective uncertainty is approximated by a regression with the difference in the two probability answers on the left-hand side. For perspective, let’s start by taking a look at a chart showing the performance of the S&P Industrial Index (NYSEARCA: SPY ) beginning with January of 2015. The source of the money flowing into the market was not member banks, but foreign banking houses and U.S. businesses and private individuals attracted by the high rate of interest which borrowers were prepared to pay. Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999.

Some people would have you believe that nobody can anticipate the next great economic …

The Number 1 Risk To Your Retirement? Inflation

Click for a PDF (portable document format) printable version of this Every-Day Edit activity. John Hussman is a former professor of economics and international finance at the University of Michigan, and the information in his latest weekly market comment is staggering. However, how a stock market crash affects individual stocks and if stocks with different financial characteristics are affected differently in a stock market crash is an issue that has not received sufficient attention. One is the stock market’s performance over the few months prior to each survey: During bear markets, investors tend to believe crash probabilities are greater. In 2016 inflation-adjusted terms, the price of a single ounce of gold rose from just $291 an ounce in 1929 to $539 in 1939. In particular the EURUSD, which typically weakens during market panics, rose 700 pips in four days.

Over the next month the market continued to decline sharply, however, …