A new study from Fidelity Investments found that 401(k) investors who pulled out of the equities market during the 2008-2009 economic downturn experienced only 2 percent growth, while those who maintained their investment strategy eventually saw growth of 50 percent by the second quarter of this year.
The analysis confirmed that even during periods of extremely volatile market activity, investors who maintain a diversified asset allocation strategy and do not pull out of equities investments, or make sudden reductions in their contribution levels, are rewarded when the equity markets eventually rebound.
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