Recent wild market swings have led some 401(k) investors to clamber into safer assets.
However, you may want to press pause before you increase your exposure to bonds or cash-type funds.
Net trading activity in 401(k) saving plans was higher in the last week of February than all of the combined activity in the fourth quarter of 2019, according to the Alight Solutions 401(k) Index, which measures daily activity of more than 2 million 401(k) investors with about $200 billion in assets.
The assets most sought by investors included bond funds, with 47% of inflows; stable value funds, 41%; and money market funds, 11%; according to Alight.
Meanwhile, investors fled from large U.S. equity funds, which had 43% of outflows; target date funds, 27%; and mid U.S. equity funds, 10%.
Those moves are in contrast to what most financial experts are telling investors — to sit tight and stay focused on their long-term goals.
“The balance is going to go up and down,” said Kelly O’Donnell, executive vice…
