Is it time to get out of the market? on clarkhoward.com

There is a question Clark is repeatedly hearing from callers on the show and during his appearances across the country: Should I just call a timeout and stop contributing to my retirement fund or other investment account?

The answer is no. If you are in your 20s, 30s or 40s, nothing for you has changed at all. Today's turmoil actually benefits you over the long haul.

New statistics from Vanguard show that the average amount people are saving is just over 7% of pay. But you need to save at least a dime on a dollar for long-term financial security.

Life often gets in the way of neat little plans to save a dime on a dollar. Still, you must set your priorities. Live in a smaller house, drive your car until the wheels fall off or do whatever else you must do. And be sure to fund your retirement before you fund your child's education.

If you are in your 20s, 30s or 40s, be sure you're invested primarily in stocks and then some bonds as well. If you're in your 50s or 60s, you may want to have up to 40% of your money in bond choices and less in stocks.

For those who are wondering, Clark's holdings are down 3.8% over the last 9 months. Why so little? Because he's diversified!

UPDATE: You wanted it, you got it! Clark gives you a peek inside his portfolio!

What others are saying

401k in currnet market
I am diverisfied, 20% in safe low yield, 20% in foreign markets, 30% in medium risk and 30% in high risk. My 401k does not offer metals. Is that divesified enough? Obviously not, I have loss 28% which includes all unrealized gains, all employer contributions and has begun eating into funds that I contributed. Sounds like I should do something, but what?
By JET @ 02/24/09 01:00:28 PMreport abuse
My kids growth funds - losing big
Hey Clark. My kids, ages 12 and 13 have small growth funds in Columbia Management (massachusettes), about 10K each. They've lost 40% in this economy this year alone. I say remove the money and put into local bank CD's. It wasn't for college anyway. The hubby says leave it there and let it ride. "Buy low" he says. How can you buy low if your money all gets burned up? Should we close these accounts?
By Lu Ann @ 01/20/09 12:44:49 AMreport abuse
Clark Responds
Clark responded today on his show to the questions posted here th epast few days about his ability to weather the Wall Street meltdown.
After checking his portfolio balance he says he's now down a shade over 10% for the year, and explained his allocations.

He's got 37.55 in tax free municipal bonds, with the remainder divided equally between large company domestic stock fund, small company domestic stock fund, and international stock fund that invest in stocks of European, Japanese, and Australia and New Zealand.
He also stated that he continue to invest more into his funds each month, thereby dollar cost averaging his net cost per share.

His advice was to continue investing and gave some historic facts that put the current state of the market in perspective.
Over the past 80 years the market has had 18 bear markets, averaging a 36% downturn. 4 times during that 80 years the market has suffered a 50% loss in value. The most recent 50% losss in th emarket was during the years of 2000-2002. Each time the market has recovered and moved up to make new highs.
I appreciate Clark's insight and response to overwhelming indignation in light of recent posts and questions. I just hope that I've got the stomach to hold on through this mess until things come back again. The facts and figures don't mean as much until they're slapping you around personally !
By Mike H. @ 10/08/08 06:26:00 PMreport abuse
I'm really mad at your Clark
I've been a loyal listener since the mid 90's (I live here in Atlanta) and, though I disagree with you on occasion, overall I really like you and rave about you to my friends/family. However, this whole, "I'm down only 3.8% because I'm diversified!" really irks me. It comes off to me as if you're, in a way, rubbing it in our faces.

I'm well diversified as well, as I'm invested in various low cost funds, stocks, bonds, money market accounts, and real estate. Overall, I'm quite conservative and diverse with my investing because I've been able to invest quite a bit over the years. Guess what Clark? Overall my total holdings are down at least 20%.

Like others have said, please tell us how you've managed to only be down 3.8%? You tell everyone to keep investing in the market, then turn around and brag about only being down just a small amount. With all due respect, the numbers don't add up, unless you're the best stock/fund picker in the world.

At a time when people are frustrated and upset and all their losses, you picked a poor time to essentially brag about escaping this mess. You might want to consider being just a bit more tactful in the the future.
By Erik @ 10/08/08 08:26:50 AMreport abuse
Bull Market
Well. Boys & girls. We are in a bear market. Have been since S&P hit 1600. Bear Markets typically last 600+ days amd we're about half-way into this one. Look for S&P 800 this time next year' I am 69 (no jokes please) and have moved everything into Money Markets. When the S&P hits 750 I intend to sell the farm and bet on 00 - ie, the S&P Index.
By Richard @ 10/08/08 04:10:36 AMreport abuse
3.8% Down?
I don't see how Clark is only down 3.8%. I think Clark owes it to me and all of the listeners who hang on his every word to divulge his portfolio allocation. I hate to say it but I dont believe it based on what I have heard Clark say about the way he invests.
By Dave @ 10/07/08 11:56:38 PMreport abuse
financial crisis
When Clark spoke on the air awhile back, maybe 2 years or so ago, about how we, as a nation, had spent more the previous year than we made, I knew then that bad things were coming. But I also believe that a recovery is possible if people are willing to sacrifice what they can. I am not rich, but many of us can cut back and most of us will.
By Laurie @ 10/07/08 11:41:50 PMreport abuse
Clarke is underestimating where we are...
I'm afraid Clarke is underestimating where we are in the bankruptcy stage of American World Power. We on the precipice of a complete and utter breakdown of the world’s financial markets. It will occur, and probably within the next few years. Think of the Great Depression, without the morals of the 20’s and 30’s and that’s what we will have over a great portion of the Earth. Greed has done in the days of stock market as we know it.
By Mark P @ 10/07/08 11:23:13 PMreport abuse
my investments with AG Edwards/Wachovia
My account has gone from 200K to 147K. Shall I continue to hold? By the way, my husband and I are 70 and 76. You never speak about what our age should do. We have no debt, but also, only health insurance, no life or long term.
By Comell Moore @ 10/07/08 11:09:05 PMreport abuse
Getting Ripped
After several years of losing money trading stocks and listening to Jim Cramer, I decided last October to take the advice of Clark and Dave ramsey and put my money into a batch of diversified index mutual funds and sit on them long term.
I set my portfolio up with equal weightings of large growth, small growth, large value, small value, international small cap, international large cap, and diversified emerging markets, and a small portion in REIT. Sounded diversified to me, but I've seen the value over the past year do nothing but drop from $330,000 down to today's $198,000.
At work I'm contributing 13% into a 70/30 mix of stocks and bonds in my 401k and thats down over 25% this year too.
Clark down only 3% or 4% ? I love him too, but give me a break. I'm 54 and probaly will ever recoup these losses.
So much for heeding good advice. Monet under the matress woul dhave been better off !!!
By Mike H. @ 10/07/08 07:22:25 PMreport abuse
Da!!!!!
Ok Heres the scoop If your 62 or older (hence your screwed) Any Younger This is the best time to stay with 401K!! I'm looking to buys stock and play the market now. IVN (tip) Anyway my 401 lost about 1/4 of it's value. I'm not worried I'm 43. LOL See ya in 20 years.
By Patsfan1 @ 10/07/08 06:50:56 PMreport abuse
Clark's portfolio down only 3.8%????
I agree with the others. I'm also diversified at 50 bonds/50 equities and my investments are down at least 12%. Clark please tell us how you can be invested in this market that is down at least 23% in the past 9 months, however, you are only down 3.8%. I also understand that you are invested in a BRIC fund - emerging mkts are down at least 50%. Please let us know your secret.
By Cindy K @ 10/07/08 05:33:33 PMreport abuse
Get out Now!
C'mom Clark 3.8%, really? My 401k was down 15% since January. Last week I moved the balance, which was split 70/20/10 Stocks, Money Market, Bonds to 100% Money Market. My IRA's are down 28%, as of October 7. I have moved most of my hodlings in my IRA's to GLD, Bear Funds, and TIPS. I am hearing and reading the dow could possibly sink to 4000 by mid - 2009. Ouch! I am not moving back into stocks until the news gets better and there is a consistent upswing...which may be years from now. I have also have over 100 oz. of .999 Silver, 15 oz. of Gold Eagles and $3000 of cash at home, JUST IN CASE TSHTF!
By Brad B. @ 10/07/08 05:17:50 PMreport abuse
-3.8% Iwish -36.16%
I'm in my early thirties though.... so, I went ahead with my annual 3% increase to my 401K contribution and continue with roth the exact same as always
By GS @ 10/07/08 04:48:46 PMreport abuse
Out Of Market
Obviously Clark does not have a great percentage of his assets in stocks. I am down about 4% from highs being about 15% in equities.After any little run up, I'll get totally out of stocks. Between hedge funds, insider trading, Wall Street savages etc. you really have little chance to make money. Ten years flat, and 20 years about 4% per.Why bother?
Maybe someday equities will again make sense, but not for many years to come, I'm afraid.
By Vic P @ 10/07/08 02:45:58 PMreport abuse
yeah, right!?!
when was the last time you checked your portfolio? May? a 60/40 would have lost about 10% in the last month alone if not more...I moved to 50/25/25 bonds/stocks/stable interest and was at 3.8 for the year then halfway through sept. i rebalanced into stocks hoping the government plan would help the market, boy was i wrong....now i'm unsure whether to stick it out or run back to my safer distribution and lick my gashing wounds. 3.8 my foot!!
By Dave @ 10/07/08 11:32:28 AMreport abuse
Down 3.8%?
Only down 3.8%. I am envious. Must not be invested in stocks, real estate nor oil futures. Maybe gold?
By ZhuZhu @ 10/07/08 09:54:31 AMreport abuse
Clark's Port
My figures say Clark is 68% in bonds or safer, so he does not practices what he preachs,
By Ray @ 10/07/08 07:55:15 AMreport abuse
Clark's Portfolio
Down only 3.8%? Is that all? Clark definitely cannot have 50% or more invested in stocks. No way. I am very well diversified and I am down way more than 3.8%
By HS @ 10/06/08 10:42:18 PMreport abuse
Stock Diversification?
I too am curious just how someone could have a 60/40 split (stocks/bonds, as Clark is suggesting someone that is 53, and still only be down 3.8%. This is a worldwide problem and stocks are getting hammered everywhere. I would think that 40% in any secure investment would not be enough to offset that. I mean, I pay fees to mutual fund managers to slighly better the market indicies and here Clark is hammering them. A little explanation please?
By LD @ 10/06/08 06:55:47 PMreport abuse
Diversification types
down 3.8% is very good in this market. What type of investments other than stocks and bonds provides for this type of return?
By MRG @ 10/06/08 06:26:35 PMreport abuse
Conflict of interest?
Clark wouldn't want legions of you to get out of the market because that is apparently where he plans to keep his money. His portfolio depends on you buying more stocks, not selling them.

We have not seen the bottom yet.
By Al @ 10/06/08 06:15:30 PMreport abuse

401k in currnet market

I am diverisfied, 20% in safe low yield, 20% in foreign markets, 30% in medium risk and 30% in high risk. My 401k does not offer metals. Is that divesified enough? Obviously not, I have loss 28% which includes all unrealized gains, all employer contributions and has begun eating into funds that I contributed. Sounds like I should do something, but what?

By JET @ 02/24/09 01:00:28 PMreport abuse

My kids growth funds - losing big

Hey Clark. My kids, ages 12 and 13 have small growth funds in Columbia Management (massachusettes), about 10K each. They've lost 40% in this economy this year alone. I say remove the money and put into local bank CD's. It wasn't for college anyway. The hubby says leave it there and let it ride. "Buy low" he says. How can you buy low if your money all gets burned up? Should we close these accounts?

By Lu Ann @ 01/20/09 12:44:49 AMreport abuse

Clark Responds

Clark responded today on his show to the questions posted here th epast few days about his ability to weather the Wall Street meltdown.
After checking his portfolio balance he says he's now down a shade over 10% for the year, and explained his allocations.

He's got 37.55 in tax free municipal bonds, with the remainder divided equally between large company domestic stock fund, small company domestic stock fund, and international stock fund that invest in stocks of European, Japanese, and Australia and New Zealand.
He also stated that he continue to invest more into his funds each month, thereby dollar cost averaging his net cost per share.

His advice was to continue investing and gave some historic facts that put the current state of the market in perspective.
Over the past 80 years the market has had 18 bear markets, averaging a 36% downturn. 4 times during that 80 years the market has suffered a 50% loss in value. The most recent 50% losss in th emarket was during the years of 2000-2002. Each time the market has recovered and moved up to make new highs.
I appreciate Clark's insight and response to overwhelming indignation in light of recent posts and questions. I just hope that I've got the stomach to hold on through this mess until things come back again. The facts and figures don't mean as much until they're slapping you around personally !

By Mike H. @ 10/08/08 06:26:00 PMreport abuse

I'm really mad at your Clark

I've been a loyal listener since the mid 90's (I live here in Atlanta) and, though I disagree with you on occasion, overall I really like you and rave about you to my friends/family. However, this whole, "I'm down only 3.8% because I'm diversified!" really irks me. It comes off to me as if you're, in a way, rubbing it in our faces.

I'm well diversified as well, as I'm invested in various low cost funds, stocks, bonds, money market accounts, and real estate. Overall, I'm quite conservative and diverse with my investing because I've been able to invest quite a bit over the years. Guess what Clark? Overall my total holdings are down at least 20%.

Like others have said, please tell us how you've managed to only be down 3.8%? You tell everyone to keep investing in the market, then turn around and brag about only being down just a small amount. With all due respect, the numbers don't add up, unless you're the best stock/fund picker in the world.

At a time when people are frustrated and upset and all their losses, you picked a poor time to essentially brag about escaping this mess. You might want to consider being just a bit more tactful in the the future.

By Erik @ 10/08/08 08:26:50 AMreport abuse

Bull Market

Well. Boys & girls. We are in a bear market. Have been since S&P hit 1600. Bear Markets typically last 600+ days amd we're about half-way into this one. Look for S&P 800 this time next year' I am 69 (no jokes please) and have moved everything into Money Markets. When the S&P hits 750 I intend to sell the farm and bet on 00 - ie, the S&P Index.

By Richard @ 10/08/08 04:10:36 AMreport abuse

3.8% Down?

I don't see how Clark is only down 3.8%. I think Clark owes it to me and all of the listeners who hang on his every word to divulge his portfolio allocation. I hate to say it but I dont believe it based on what I have heard Clark say about the way he invests.

By Dave @ 10/07/08 11:56:38 PMreport abuse

financial crisis

When Clark spoke on the air awhile back, maybe 2 years or so ago, about how we, as a nation, had spent more the previous year than we made, I knew then that bad things were coming. But I also believe that a recovery is possible if people are willing to sacrifice what they can. I am not rich, but many of us can cut back and most of us will.

By Laurie @ 10/07/08 11:41:50 PMreport abuse

Clarke is underestimating where we are...

I'm afraid Clarke is underestimating where we are in the bankruptcy stage of American World Power. We on the precipice of a complete and utter breakdown of the world’s financial markets. It will occur, and probably within the next few years. Think of the Great Depression, without the morals of the 20’s and 30’s and that’s what we will have over a great portion of the Earth. Greed has done in the days of stock market as we know it.

By Mark P @ 10/07/08 11:23:13 PMreport abuse

my investments with AG Edwards/Wachovia

My account has gone from 200K to 147K. Shall I continue to hold? By the way, my husband and I are 70 and 76. You never speak about what our age should do. We have no debt, but also, only health insurance, no life or long term.

By Comell Moore @ 10/07/08 11:09:05 PMreport abuse

Getting Ripped

After several years of losing money trading stocks and listening to Jim Cramer, I decided last October to take the advice of Clark and Dave ramsey and put my money into a batch of diversified index mutual funds and sit on them long term.
I set my portfolio up with equal weightings of large growth, small growth, large value, small value, international small cap, international large cap, and diversified emerging markets, and a small portion in REIT. Sounded diversified to me, but I've seen the value over the past year do nothing but drop from $330,000 down to today's $198,000.
At work I'm contributing 13% into a 70/30 mix of stocks and bonds in my 401k and thats down over 25% this year too.
Clark down only 3% or 4% ? I love him too, but give me a break. I'm 54 and probaly will ever recoup these losses.
So much for heeding good advice. Monet under the matress woul dhave been better off !!!

By Mike H. @ 10/07/08 07:22:25 PMreport abuse

Da!!!!!

Ok Heres the scoop If your 62 or older (hence your screwed) Any Younger This is the best time to stay with 401K!! I'm looking to buys stock and play the market now. IVN (tip) Anyway my 401 lost about 1/4 of it's value. I'm not worried I'm 43. LOL See ya in 20 years.

By Patsfan1 @ 10/07/08 06:50:56 PMreport abuse

Clark's portfolio down only 3.8%????

I agree with the others. I'm also diversified at 50 bonds/50 equities and my investments are down at least 12%. Clark please tell us how you can be invested in this market that is down at least 23% in the past 9 months, however, you are only down 3.8%. I also understand that you are invested in a BRIC fund - emerging mkts are down at least 50%. Please let us know your secret.

By Cindy K @ 10/07/08 05:33:33 PMreport abuse

Get out Now!

C'mom Clark 3.8%, really? My 401k was down 15% since January. Last week I moved the balance, which was split 70/20/10 Stocks, Money Market, Bonds to 100% Money Market. My IRA's are down 28%, as of October 7. I have moved most of my hodlings in my IRA's to GLD, Bear Funds, and TIPS. I am hearing and reading the dow could possibly sink to 4000 by mid - 2009. Ouch! I am not moving back into stocks until the news gets better and there is a consistent upswing...which may be years from now. I have also have over 100 oz. of .999 Silver, 15 oz. of Gold Eagles and $3000 of cash at home, JUST IN CASE TSHTF!

By Brad B. @ 10/07/08 05:17:50 PMreport abuse

-3.8% Iwish -36.16%

I'm in my early thirties though.... so, I went ahead with my annual 3% increase to my 401K contribution and continue with roth the exact same as always

By GS @ 10/07/08 04:48:46 PMreport abuse

Out Of Market

Obviously Clark does not have a great percentage of his assets in stocks. I am down about 4% from highs being about 15% in equities.After any little run up, I'll get totally out of stocks. Between hedge funds, insider trading, Wall Street savages etc. you really have little chance to make money. Ten years flat, and 20 years about 4% per.Why bother?
Maybe someday equities will again make sense, but not for many years to come, I'm afraid.

By Vic P @ 10/07/08 02:45:58 PMreport abuse

yeah, right!?!

when was the last time you checked your portfolio? May? a 60/40 would have lost about 10% in the last month alone if not more...I moved to 50/25/25 bonds/stocks/stable interest and was at 3.8 for the year then halfway through sept. i rebalanced into stocks hoping the government plan would help the market, boy was i wrong....now i'm unsure whether to stick it out or run back to my safer distribution and lick my gashing wounds. 3.8 my foot!!

By Dave @ 10/07/08 11:32:28 AMreport abuse

Down 3.8%?

Only down 3.8%. I am envious. Must not be invested in stocks, real estate nor oil futures. Maybe gold?

By ZhuZhu @ 10/07/08 09:54:31 AMreport abuse

Clark's Port

My figures say Clark is 68% in bonds or safer, so he does not practices what he preachs,

By Ray @ 10/07/08 07:55:15 AMreport abuse

Clark's Portfolio

Down only 3.8%? Is that all? Clark definitely cannot have 50% or more invested in stocks. No way. I am very well diversified and I am down way more than 3.8%

By HS @ 10/06/08 10:42:18 PMreport abuse

Stock Diversification?

I too am curious just how someone could have a 60/40 split (stocks/bonds, as Clark is suggesting someone that is 53, and still only be down 3.8%. This is a worldwide problem and stocks are getting hammered everywhere. I would think that 40% in any secure investment would not be enough to offset that. I mean, I pay fees to mutual fund managers to slighly better the market indicies and here Clark is hammering them. A little explanation please?

By LD @ 10/06/08 06:55:47 PMreport abuse

Diversification types

down 3.8% is very good in this market. What type of investments other than stocks and bonds provides for this type of return?

By MRG @ 10/06/08 06:26:35 PMreport abuse

Conflict of interest?

Clark wouldn't want legions of you to get out of the market because that is apparently where he plans to keep his money. His portfolio depends on you buying more stocks, not selling them.

We have not seen the bottom yet.

By Al @ 10/06/08 06:15:30 PMreport abuse

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Oct 06, 2008 -- Is it time to get out of the market?

What others are saying