inthemoney

The "Worst Is Over" Crowd Is In for a Shock

> Boat 52
Sep 09 03:59 PMJon T. has summed it up correctly IMO. For those who believe in buy and hold, the 1930s is proof that there times when this simply does not work. Go ahead and hold those equities and if the S&P finally bottoms south of 900, you can look forward to a doubling of your holdings during the next generation's lifetime.
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The problem I see here is that most americans were led into 401K accounts with a promise of 7% annual return over the years. I was just talking to some people at work (republicans), they are not panicking yet, they were promised that their 401K will go up over the long term. Our government will do anything in its power to prevent the stock market from a significant crash because it will mean 401K going down the pipe, the same way that healthcare, education, housing went. There will be so much intervention , it will make your head spin.
Having said that, I am short retailers and some financials. I sold all homebuilders in the recent rally. But expecting 900 on S&P is a bit extreme. Not until November, at least.