Retirement savers flee stocks as market slides

Over the past week, 401(k) participants have been trading much more than usual, moving from equities into fixed income and money funds.
FEB 08, 2018

Retirement savers violated a cardinal rule of investing this past week: They sold into a plunging market. After racing into equities in January, they did an about-face as markets fell last Friday. Savers moved into money and fixed-income funds, trading at close to three times the norm, according to Alight Solutions' 401(k) Index. On Monday, when the Dow Jones industrial average plummeted 1,175 points, they repeated the pattern, this time trading at 12 times the typical pace. The next day, as the market recovered some losses, 401(k) savers kept selling stocks, trading at a rate of four times the usual. The last time trading reached 12 times the norm was on Aug. 8, 2011, when markets dropped on concerns about a global debt crisis. The index tracks daily moves of almost 2 million 401(k) participants with combined assets of more than $200 billion. (More: Retirement risks keep rising)

Latest News

AdvisorFinder launches AI visibility measurement tool for RIAs
AdvisorFinder launches AI visibility measurement tool for RIAs

Mercer, Focus Partners Wealth, Mariner, Creative Planning and Captrust top the leaderboard tracking AI search results for RIA firms.

Edwards Jones targets next-gen investors with hybrid investment advisory platform
Edwards Jones targets next-gen investors with hybrid investment advisory platform

"We believe this model will help younger investors – and any investors who value a hybrid advice experience,” said Ryan Robson, principal at Edward Jones.

Giant Cambridge group in Pennsylvania bolts to LPL
Giant Cambridge group in Pennsylvania bolts to LPL

Conte Wealth Advisors reportedly has $1.4 billion in client assets and 20 advisors.

MAI Capital expands in California with $551 million OG Private Wealth deal
MAI Capital expands in California with $551 million OG Private Wealth deal

The Cleveland-based RIA's latest tie-up extends the firm's national footprint into the Golden State, where opinions continue to be split over a contentious billionaire wealth tax proposal.

Advisor moves: Missouri-based LPL team decamps to Osaic in full-circle succession
Advisor moves: Missouri-based LPL team decamps to Osaic in full-circle succession

Meanwhile, Cetera has welcomed a family-run practice from Commonwealth, and a Merrill advisor joins an existing UBS team in Connecticut.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income