News this week that inflation eased more than expected in October solidified the view that the Federal Reserve is done with its most aggressive rate-hike campaign in four decades.

And that could be a boon for the stock market and your 401(k).

  • AlecSadler@lemmy.world
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    1 year ago

    Really? Like even during substantial drops in the 2008 crisis? I’m legitimately asking because if this is true then I have some digging to do.

    • Kata1yst@kbin.social
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      1 year ago

      Okay… But the 401k holders aren’t being cheated in this instance. They bought an asset that can increase or decrease. It increased for a long time. Then decreased. Then increased again FAR beyond where it was in 2008 just 6 years later. Most investors kept their money in and are doing just fine.

      401ks are insured against losing the assets, e.g you own 500 of a particular option, you will always own those 500 unless you sell or that particular asset goes belly up, which is quite rare.

      Pensions are a different beast. Closer to the pyramid scheme referenced earlier, and were generally dissolved over the last 40 years by the companies that promised them.