Flash Point

My 401(k) is performing ahead of the market. Since January, I've only lost 35% of it. A 35% loss is good news these days.

That, in and of itself, is a pisser.

Still, I haven't reallocated my asset portfolio because I'm not sure what good that would do. Everybody's losing money hand over fist, and my 35% loss is actually better than what some folks are getting.

Our 401(k) rep has been in the office at least three hours for the last three days holding back-to-back meetings with who people have suddenly become aware that they have a portfolio that is losing value on a geometric scale and want to know what to do about it.

I wasn't one of those people. I review and re-allocate mine every few months based on performance. I look at performance over as long a period as I can get, and transfer assets from under-performing funds to ones that have better histories. But no one is performing well these days, so I don't see the point of reallocating or spending time talking to someone who's just going to tell me to remain calm.

Making changes like that in the middle of a firestorm makes about as much sense as using a martini to put a fire out that's reaching a flash point.

Even though a graph of the markets looks like documentation of a heart attack or stroke, I'm already remaining calm. I can't touch that money for 20 years or so. If the market doesn't recover by then, I'll have much bigger problems to worry about. And if it does, I'm picking up stocks at fire-sale prices. My contribution hasn't changed, but prices have, so my dollars go farther than they ever have.

It's kind of like my favorite thrift store, Top Drawer. It's in the middle of some pricey neighborhoods, so it gets the good stuff. And every Saturday they mark certain categories (men's shirts, women's pants) to a buck or two a piece. Among other things, I got a very nice Perry Ellis suit for $15.

Pennies on the dollar.

It's the upside of a downturn.