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Bad Behavior Persists in 401(k) Accounts

Yes, stocks have been on a real tear lately, but guess who hasn't been along for the ride: The millions of 401(k) investors who "moved to safety" after the 2008-2009 market and never felt comfortable enough to move back to stocks.Participants in 401(k) plans ended 2012 with less than half of their assets invested in stocks, down from 59% at the end of 2006, Chicago-based Spectrem Group reported on Tuesday. That's despite the fact that the S&P 500 stock index rose 6.4% over that period and has more than doubled since it hit bottom in March 2009."The population of participants has really remained a little more conservative and really hasn't benefited as much ... (as non-retirement investors) ... from the economic and stock market rallies of the last couple of years," said George H. Walper, Jr., president of Spectrem Group, a market research firm.Some of that is probably not so bad. Participants trimmed risky holdings of their own company stocks from 19% of portfolios at the end of 2006 t...

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