Quote:
Originally Posted by toy71camaro
So question....
With the "sell in may and go away" theory, that seems to be pretty consistent year to year... would now be a bad time to restructure/re-balance a 401k portfolio?
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I wouldn't pay ANY attention to any of that kind of stuff. That's "trader talk". You're an INVESTOR. LONG TERM.... so a few percent one way or the other won't affect your total return in the long run.
Having said that - August is a good "bottom". And it depends on your question if your asking if now is a good time to SELL.... vs buy. Typically the market sinks through the summer. So BUYING sometime in the summer usually, on average, works out in the long run.
Remember the longer you wait to "do something" - the less time you have for compounding. Go back and look at the compounding posts -- IT'S NOT THE FIRST DOUBLE --- IT'S the LAST DOUBLE - that counts - and that means you have to be EARLY in order to get to that last double. That is YEARS away - so does a few days or weeks make much of a difference -- YEAH if you're buying dividend payers... because a dollar now -- might be 1000 dollars later.