6. Let\'s say you are actively managing your own 401K Plan. You have several U.S

Question

6. Let's say you are actively managing your own 401K Plan. You have several U.S. stock funds, a U.S. corporate bond fund, a money market fund, and a couple international stock funds to choose from when allocating your funds. At what point might you switch your fund allocations from stock funds to bond funds? When the S&P; 500 is as low as you expect it to go for awhile& the "Fed" is worried about inflation. When the S&P; 500 is as high as you expect it to go for awhile & Fiscal Policy suggests deficit spending A. B. C. When the S&P; 500 is as high as you expect it to go for awhile & market interest rates have D. When the U.S. Government stops its "deficit spending" & "war-mongering behavior" probably peaked for awhile duc to the "Fed" believing that inflation is "under control".

Explanation / Answer

Option C

i would forego returns from stock when i think stock is not going to go up more and bond is going to go u, which is possible when interest rates would go down, possible in the case when inflation is under control

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