How Should I diversify my 401k?

**Ice** · 11-02-2010, 23:46

Since you are young, I'd say about 80% in S &P, 10% cash, and 10% conservative bonds. It's really a crap shot man... it depends how much risk and upside you want to expose yourself to.

This thread title makes me feel god damn old.

**TosaInu** · 11-02-2010, 23:48

Originally Posted by Ice

This thread title makes me feel god damn old.

It was that long ago you got 401k?

**Ice** · 11-02-2010, 23:51

Originally Posted by TosaInu

It was that long ago you got 401k?

When I joined this forum, Strike was talking about AP classes and getting his license. Now he is almost done with college and investing in a 401k.

**TosaInu** · 11-02-2010, 23:59

Oh, that way.

**Lemur** · 11-04-2010, 17:13

Strike, never buy something when you see the crowd howling for it. If everybody is convinced that goose feather futures are the path to eternal riches, that's when you either sell or completely avoid goose feathers.

Simple rule of investing: When people are screaming that the end is near and we're all going to be living in moldy barrels under a bridge any minute, buy. Conversely, when you hear that we're in a new economic paradigm where X* is going to go up and up and never come down 'cause the rules have changed, sell.

* X = Any commodity, stock or substance which has become popular for no good reason. See housing bonds, gold, ARs, junk bonds and tulips for further reference.

**gaelic cowboy** · 11-04-2010, 17:47

Originally Posted by Lemur

Strike, never buy something when you see the crowd howling for it. If everybody is convinced that goose feather futures are the path to eternal riches, that's when you either sell or completely avoid goose feathers.

Simple rule of investing: When people are screaming that the end is near and we're all going to be living in moldy barrels under a bridge any minute, buy. Conversely, when you hear that we're in a new economic paradigm where X* is going to go up and up and never come down 'cause the rules have changed, sell.

* X = Any commodity, stock or substance which has become popular for no good reason. See housing bonds, gold, ARs, junk bonds and tulips for further reference.

If you hear on the likes of Bloomberg "It is different this time" then immediately go grab granpappys blunderbus from the attic and stock up on bean tins and if there telling you to sell then buy and hold your nerve.

The problem as I see it is for some reason Economists seem to think the economy is outside the laws of thermodynamics or summit.

**Fragony** · 11-05-2010, 12:19

Originally Posted by Lemur

Strike, never buy something when you see the crowd howling for it. If everybody is convinced that goose feather futures are the path to eternal riches, that's when you either sell or completely avoid goose feathers.

Simple rule of investing: When people are screaming that the end is near and we're all going to be living in moldy barrels under a bridge any minute, buy. Conversely, when you hear that we're in a new economic paradigm where X* is going to go up and up and never come down 'cause the rules have changed, sell.

* X = Any commodity, stock or substance which has become popular for no good reason. See housing bonds, gold, ARs, junk bonds and tulips for further reference.

Worst financial advice ever. Tosa nailed it spread the risk.

**gaelic cowboy** · 11-05-2010, 14:52

Originally Posted by Fragony

Worst financial advice ever. Tosa nailed it spread the risk.

Spreading the risk only works IF you know the value of the risk, that is why the world is in recession cos risk was spread across the system and no one knew the true value of it. The idea was that risk had being reduced so much it could now almost be ignored and we could just concentrate on value for money.

Unfortunately for those bankers any farmer could have told them price is an indicator of what someone is willing to pay, value however is far more hazy.