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% growth, while those who maintained their investment strategy eventually saw growth of 50% 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.
