01 October 2008
The amount wiped off the American stock market on Monday alone was $1.3 trillion. That's almost twice as much as the theoretical price tag on the bill.
Worldwide, the damage is much bigger.
Ordinary Americans, through their mutual funds, lost at least $400 billion. That's real value wiped off 401ks, IRAs, and 529 plans. That's retirements delayed, and college plans re-evaluated.
And again, that's just the losses suffered on Monday.
Checking one of my 401K accounts last night, I am astonished that after Monday's losses, I'm down 27% year to date. Is it time to cut back my contributions? (I'm at 15%) or double them up? I'm thinking stay the course, but it's tempting to transfer all my holdings to cash on the next big rally and take a breather, and temporarily re-allocate future contributions to cash or bond funds.
Posted by IMA at 10/01/2008