Young Investors Need Not Worry About Down Markets

pbucelwicz — Mon, 25 Aug 2008 12:00:48 +0000

There is a nice article on about.com called Down Markets Good for Many Investors, talking about how a down market can be a good thing for your young 401k.

Being a young professional, you have many years ahead before retirement. This gives our 401k’s and other mutual fund investments plenty of time to turn around. The down market is actually a great time to buy shares at a bargain price which is one of the most basic investing strategies, buy low and sell high. With time and history on your side, chances are the market will go way up from today.

Here is an excerpt from the Article:

Taking the average is nice, but lets put some money on the line. If we put $1,000 per quarter into each scenario, here’s what happens:

Steady Growth
Shares Owned: 1,655
Portfolio Value: $73,544

Down Market With Recovery
Shares Owned: 2,427
Portfolio Value: $107,809

If you would like to see the full study, click here.

Fidelity 130/30

vadim.vintsevsky — Thu, 10 Apr 2008 11:58:46 +0000

Fidelity just launched a new fund, the 130/30. Where 130% will be from long positions and 30% from short. Sounds like a great idea to me. I know the SEC has rules that Mutual Funds can not using shorting to try to make money. How does everyone feel about this? Also, how many of these types of funds were there before?

Personal Finance Questions and Answers for Young Professionals » Mutual Funds

Young Investors Need Not Worry About Down Markets

Fidelity 130/30