401K Madness!

I can not believe it has been one year almost to the day since I last made a post here.

While no doubt most of my fellow 401K prisoners lost approximately 40-50% of their balances during the past 12 months, my balance maintained positive growth, thanks to Treasuries. I even moved funds into PIMCO the day it jumped 9%, You would have thought I had a “red phone” to Newport Beach on that day the way I timed that.

A few months ago I could see the “bullish trend in a bear market”. So I moved the balance to a “small aggressive fund” heavy into the likes of Amazon and Google.

But last week I determined the “bullish trend” is over and reality is quickly sinking in.

If you look at the charts of ’29 and ’30 you’ll see a pattern we are currently repeating. People think the BIG crash happend 4th quarter in ’29. It didn’t. Yes, there was a crash that brough the markets down about 50%. But if you look at the charts for ’30 THAT is where you see the markets falling into the abyss.

And that is where we are now. About to fall into the abyss.

I had the opportunity last week to pull HALF of my 401K balance out in the form of a loan, being charged only 5%. I have taken advantage of that opportunity to retire debt. The balance remaining has been moved into the “Guaranteed 3%”, the only remaining lifeboat, leaking with a money supply that has exploded with hyperinflation soon to follow with the sooner than anticipated crash of the U.S. Dollar.

I’d say it’s time for me to start creating content for another one of my sites. A few years ago I registered the domain: DUMP THE DOLLAR . COM.

What I would like to do now with the 401K, which I deem now to be an entirely hopeless case and have changed my contribution to ZERO percent, is to see if I can close the account and move the balance to an IRA where I can at least introduce some sanity and link the balance to precious metals and commodities. Perhaps the only way to close the account is to conclude my employment. I don’t know. But I’ll find out. And when I do, I will make another post here at 401K Madness!.

I’ll do my best not to wait another year. Because after all, it’s not going to take that long for all HELL TO BREAK LOOSE.

Between the Middle East, the FED, Wall Street, and DC, how can it not?

I want those odds in Vegas.

This entry was posted on Tuesday, April 21st, 2009 at 2:59 am and is filed under Why. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.