Your 401k is on the rebound

Wall Street has roared back with the Dow over 27k and the NASDAQ topping 10k for the first time. For most, 401ks have rebounded from lock down lows.

Michael Smith, president of Houston's STA Wealth Management, says many investors' 401k plans lost a lot during the lock downs.

"The average person, let's just call it a balanced portfolio, was probably down somewhere between I'd say ten to twelve percent and then the recovery shows them back up somewhere between five and six, slightly negative for the year.

But Smith warns stocks and the economy are opposites right now. He says be cautious with investments and be aware the markets may continue an up and down rollercoaster ride.

"The economy and the stock market are completely the opposite from each other right now; I expect you'll see rallies as long as liquidity is flowing and you can see volatility and pullbacks when liquidity is drying up so be cautious."

Smith says stick to your retirement plan and be cautious; this is not a good time to get risky.


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