Chris Burford wrote:
> ". . .
. . .However, sadly, economic growth in both areas could be more vulnerable than is commonly supposed. A further spread of contagion from Latin America or Eastern Europe could be a blow. As would a stock market crash in the USA where many individuals rely on stock market wealth for their savings."
Although many individuals do rely on the stock market for their savings, aren't much of their holdings illiquid investments held in 401(k) plans. Wouldn't this mean a shift to bond holdings, but that long term the market is very likely to bounce back because the investment dollars will already be there? Are there any numbers that show the degree to which individual investors are committed to the market because of the heavy early withdrawal penalties of 401(k)?
Thanks for any input.......eric dorkin