Imagine the shock this morning of a fictitious couple named Joe and Jill Average that are nearing retirement with a net worth last month of around 250 thousand dollars as they check to see how they are doing after hearing "murmurs" the market has slipped. With three-quarters of it in the market, they will be horrified to find that the mere pullback of stocks in recent weeks has ripped away over 50 thousand dollars or 20% of their wealth.

Few people watch their investments daily but rather chose to peek at them every now and then. This is the main reason a lot more Americans are not waking up today sick to their stomach and in near panic from the devastation markets have wrecked upon their savings as trillions of dollars have vanished into a big black hole. The article below argues this does not make for a Merry Christmas!

Comments (2)
No. 1-2
Sechel
Sechel

To be near retirement and have 75% invested in stocks is financial suicide. I follow the old rule of 100 less my age. It forces a reduction in equities as I age and have less time to recover from a stock market decline.

TomKathQld
TomKathQld

I think advancingtime is referring to Mr AVERAGE, whose retirement fund is still being managed by a very average manager of a compulsory super fund!