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Posted: 9/14/2014 9:32:08 AM EDT
Small caps have done pretty well the last 2-3 years but im thinking it might be time to play it safe for a while.  Question is - if this is within a 401K, what categories would better handle a large correction in stocks?

General categories:

Large caps
Midcaps
Fixed income aka, bonds (uhhh no)
International
Real estate fund




Link Posted: 9/14/2014 9:40:17 AM EDT
[#1]
All of them combined would weather a storm better as a diversified portfolio!  If you are trying to time the market in your 401k you may get a healthy dose of reality.  The retirement portfolio philosophy is based on diversification and dollar cost averaging, not market timing.  Market timing is what your Scottrade account is for.  That is my $.02.  Take it for what it is worth.
Link Posted: 9/14/2014 10:09:59 AM EDT
[#2]
Discussion ForumsJump to Quoted PostQuote History
Quoted:
All of them combined would weather a storm better as a diversified portfolio!  If you are trying to time the market in your 401k you may get a healthy dose of reality.  The retirement portfolio philosophy is based on diversification and dollar cost averaging, not market timing.  Market timing is what your Scottrade account is for.  That is my $.02.  Take it for what it is worth.
View Quote


You are right.

You should already have some of each.

Of what's on your list, the large caps will fare better but beware, the frothy market which everyone has been expecting to correct for the last few years has yet to do so.

Chances are you'll lose more sitting in cash than you will gain by trying to time the market.
Link Posted: 9/14/2014 9:39:34 PM EDT
[#3]
Diversify, as mentioned.
I have mine in small, mid, and large caps, along with a little in international. I try to re-allocate every once in a while to put a bit more % in those that have been outperforming in recent history.
Link Posted: 9/15/2014 9:34:50 PM EDT
[#4]
Quoted:
Small caps have done pretty well the last 2-3 years but im thinking it might be time to play it safe for a while.  Question is - if this is within a 401K, what categories would better handle a large correction in stocks?
General categories:
Large caps
Midcaps
Fixed income aka, bonds (uhhh no)
International
Real estate fund
View Quote

http://www.ar15.com/forums/t_1_133/1665650_Whats_the_deal_with_the_Fidelity_Contrafund_Fund_.html&page=1#i49342081

ar-jedi
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