401(k) Savers Held Tight During Thursday's Market Rout
Thursday's steep selloff in stocks surprisingly didn't prompt a flurry of trading activity in 401(k)s.
Trades yesterday amounted to 0.01% of assets in a subset of 401(k) plans administered by record-keeper Alight Solutions. Alight tracks two million investors with $264 billion in assets. The few who did react shifted a net $26 million from target-date and stock funds into investments including fixed income.
That equates to an average trading day, which is 'really odd, because we usually see people trade in higher volumes when the market drops that much,' said Rob Austin, director of research at Alight, which serves over 200 large plans. The S&P 500 fell nearly 5% on Thursday.
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