Here’s what an economist had to say about investing on ABC 7 Eyewitness News tonight:
- Third quarter 401(k) statements are reaching homes now. Don’t look at your statement.
- If you put more money in your 401(k), put it into Treasuries.
- If you are thinking about stocks, think again. They look cheap now, but they’ll be cheaper later.
I suppose if you would go insane after seeing your 401(k) balance, it would be a wise decision for your mental health to hide your head in the sand. Times like these test the investor. Putting your money into stocks is risky; if you want the returns touted by finance professionals, you have to accept that risk. It’s easier to accept that risk when the market is moving upwards.
I’m not quite sure the same tips apply to the 25-year-old with 40 years before retirement and the 60-year-old approaching retirement.
This is interesting advice from an economist. What do you think?