Financial Information
Can the stock market go down to 0? Need advice for my retirement fund?
Question : Can the stock market go down to 0? Need advice for my retirement fund?
I have about 35 years left until I retire, and once about $ 200,000 set aside in balanced mutual fund portfolio. Now, this portfolio has lost about $ 75,000. It continues to go down about 5% per trading day.
Can the market go to 0? Can I lose it all? Do I need to pull everything out as quickly as possible?
retirement advice
Best answer:
Answer by greenback party member
I think they would close all the exchanges before that happened
Are you contemplating armageddon
People always do this, they wait untill they lose a whack of money
and then they go seeking advice
we are in a bear market at the present time
during bear markets you do get sharp rallies
I would expect the market to bottom, probably sometime in the next couple of weeks
and then rally sharply
possibly backup to around 11,500
but I am not sure how high the rally will go
It will probably top out early next year
and then the market will start to trend down again
Use that opportunity early next year to get out of your stocks
as the bear market will not be over and stocks will start to fall again
although probably not as steeply as they have the past couple of weeks
We just happen to be in a time period where the stock market is not a good place to be
Unless you know how to sell stocks short
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#2 written by quizzard123 1 year ago
A balanced fund which has lost 37% is not very well managed, in my opinion.
No, the market cannot go to zero, although individual stocks can if the company fails totally. For instance, see WAMU investors.
The whole idea of mutual funds is that they invest in a wide range of investment vehicles, which may contain (depending on the fund) stocks, bonds, interest bearing securities, etc. A well managed fund will always keep a cash amount as well, to take advantages of craziness like we’ve seen in the last few days.
My opinion (and I am not a professional, just an educated, observant investor) is that to take it all out now guarantees you will have lost 37% of your investment. With 35 years left, you need to trust your fund managers and hold your investment. It will come back, it always does.
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#4 written by nicedoc 1 year ago
If you have 35 years left to retire, take a deep breath and resist doing anything drastic. The economy has weathered the Great Depression, Black Monday, the tech bubble burst etc… and still the market has averaged a 10% return. You’ll be fine in the long-run. If the stock market ever goes to zero, it means that there was a worldwide apocalypse and money would be worthless anyway.
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#5 written by Greshnab 1 year ago
it is highly posssible the market is going to drop down to around 8.5k or so.. it can’t go to zero…
should you pull it out now.. hard to tell that.. anytime it is an election year… in about feb or march move your money to bonds.. after the new pres is sworn in put it back in stocks you will be better off…
right now you have ridden the coaster this far down.. i might be inclined to stay on.. what you do NOT want to do is get out of stocks and NOT go back in.. the market will go back up.. if not short term then long term.. at your age you have enough time to wait.. i would think long term.. and prolly leave it be.
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You and I are in a similar situation. Usually I’m a pretty calm person and not one to feed on the media frenzy. I believed in “buying and holding”. But tomorrow I’m meeting with my broker and selling. I can’t stand feeling as though my future is dangling on the unknown. All I know is that this is my money and I want to keep as much of it as possible for now.