"Some pundits and skeptics have serious doubts about the S&P 500's ability to pull off the hattrick of 20% return years. Wells Fargo ( NYSE:WFC) senior market strategist Scott Wren thinks that such a so-called "three-peat" is probably off the table, with a 6,800 target for 2025, which entails a return closer to 14%. Indeed, that's still a pretty solid return, even if it doesn't stack up to the previous two years."
"The person who posted on r/fatFIRE thinks a recession is coming and wants to convert around 90% of their 401(k) into cash. That's an extreme reaction on a hunch if you ask me. And one that I wouldn't advise unless something significant has changed with their personal financial situation (let's say unexpected medical bills or any other expense that came from out of left field)."
Some market observers doubt the S&P 500 can deliver a third consecutive 20% return year. Wells Fargo projects a 6,800 level for 2025, implying roughly a 14% return. The outlook into 2026 feels extended and fragile as expectations rise. A retail investor on r/fatFIRE plans to convert about 90% of a 401(k) to cash anticipating a recession. Converting most retirement savings to cash on a hunch is extreme unless unexpected personal financial needs have arisen. Financial-advisor consultation and disciplined planning are advised because emotional, late-cycle decisions can have outsized consequences. Rapid multi-year gains may be unsustainable and could end in correction.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]