People panic sold on monday, trading volume was 10 times normal

[Demovictory9]

https://finance.yahoo.com/news/the-market-pummeled-401k-accounts-last-week-panic-selling-ensued-121625101.html

The market pummeled 401(k) accounts last week. Panic selling ensued.
'The tendency as an investor is to say, yes, I want to take cover,' one financial planner said. That's often not the best move.


Last week’s tariff-induced market sell-off ripped through 401(k) accounts, and over the weekend, millions of savers and retirees took matters into their own hands.

People pulled vast sums of 401(k) money from large US equity funds and target date funds and shifted to more conservative stable value, bond, and money market funds, according to Alight Solutions’ 401(k) Index.


Trading activity on Monday was almost 10 times an average day’s volume, with investors fleeing stocks for the safety of fixed-income funds, Rob Austin, head of thought leadership at Alight Solutions, told Yahoo Finance. It was the highest daily trading level since March 2020 when the pandemic hit.

Why the Monday meltdown? Historically, when stock markets have large losses on Fridays, very high trading activity in 401(k) plans follows on Monday, Austin said. People react to the news by tweaking their portfolios over the weekend, but those changes don’t get executed until the market reopens.

[Raven123]

1. The problem is this decline had a pinpoint origin and he doubled down over the weekend

What were people supposed to think.? His cabinet was publicly acting as bonkers as Trump. Congress debated tax cuts rather than a plan to reclaim their tariff authority. Some day Andrew Ross Sorkin will write a book on who flooded the market with Treasuries. Lots of reports about hedge funds, Canada, Japan and a little bit of China. Gotta wonder if it wasn’t all of the above.

The age old advice to keep calm and ignore the red is a little hard to follow when the solution was obvious.