The monthly 401K analysis showed little to no change from last month. This is a period of uncertainty. My daily SPY analysis showed an up signal; but the market has been trading sideways for a while. The eventual resolution to the sideways move will be either up or down.
With my current employer’s 401K fund, I will stick to 50% Fidelity Govt Income Funds (weekly chart attached) and 50% Money market funds. If one wanted to be in stock funds, then the Fidelity fund and the Fidelity Blue Chip were the two strongest; but I will prefer to err on the safe than sorry side. When markets do drop, they do so ferociously and a lot of damage can occur in one month. 2008 sure pointed that out.
With my previous employer, the suggested road is a 50:50 stock fund bond fund mix in my 401K. Funds to be in are Cohen & Steers Realty fund (weekly chart attached), Fidelity Contrafund and two PIMCO bond funds – Real return and Total return. In addition, I am carrying some SPY put option hedges against my long 401K position. This is not a period of time I am making money in my 401K other than treading water and waiting for the directional move to be made visible with time.
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