Tags: 401k | holders | gangbusters | stocks

WSJ: 401(k) Holders Going for Stocks Like Gangbusters

By    |   Sunday, 04 May 2014 08:19 PM

Investors in 401(k) plans apparently believe the five-year bull market for stocks still has room to run.

Employees put 67 percent of their new 401(k) contributions into stocks during March, according to Aon Hewitt, which compiles 401(k) data for 1.3 million people at big companies, The Wall Street Journal reports.

That's the highest rate since March 2008, when the financial crisis was in its infancy. The figure stood at 56 percent in March 2009, when stocks dropped to their bottom.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

As a result of the increase in contributions and the soaring values of stocks, 401(k) investors have a bigger percentage of their assets in stocks than at any time in the last six years. In March the total was 66 percent, up from 48 percent in February 2009.

The stock-market crash of 2008-09 made investors opt for bonds over stocks for about three years.

But the torrid rally of stocks last year—the S&P 500 gained 29.6 percent—improved investors' sentiment, according to The Journal. So has the economy's moderate rebound.

The S&P 500 and Dow Jones industrial average stand 1 percent from their record highs.

Joshua Harris, co-founder and chief investment officer of private-equity titan Apollo Global Management, doesn't share 401(k) investors' enthusiasm for stocks.

The Federal Reserve's massive easing program has pushed both stocks and bonds to overvalued levels, he said at an investment conference last week, CNBC reports. "The quantitative easing and the excess money and the low interest rates have driven pricing up of almost all financial assets to beyond what their intrinsic value might be," Harris said.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Articles:

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
Investors in 401(k) plans apparently believe the five-year bull market for stocks still has room to run.
401k, holders, gangbusters, stocks
298
2014-19-04
Sunday, 04 May 2014 08:19 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved