Almost everyone that has or had a 401K had to invest in stocks and or bonds. The stock market has gone to the pre 1997 value but so what? If you didn't sell your stock you still have it. When the market rises again your stock will go back up. At least that is the assumption of most people that buy and sell stock. But what do you do if the company you had stock in is going belly up? What are the exit signs that you should look for when you hold stock in a company?
The best thing to do is to watch the major stock holders that are officers in the company. If the vice president or financial officer sells a large portion of stock or stock options then it is time to start watching to see if there will be an announcement in the next few days about the company.
I use to buy and sell stocks many years ago. I now just invest in mutual funds because they are less volatile than just straight stocks. If you must know, yes I still have my mutual fund stocks. I have not sold any in the last 2 years.
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