I wouldn't invest money that's meant for buying a home or other large purchase period. It's generally accepted that money for a house, wedding, w/e it is, you don't put it in equities or bonds, just savings account (money market) cause you'll need that money and you don't want to expose it to risk (which you do whenever you invest).
You say increasing your401K contribution, you mean you haven't maxed out? You should always max out, always always always! Then use the leftover money to save. Don't skimp on contributions to save money for something. Save, spend less then if that's the case. Employee match is a nice bonus but it's more tax savings and reducing your tax bill.
FWIW, I'm -2.3% but my 401k isn't very big so like $150 so far. I guess when you contribute weekly, you buy on peaks and dips so pretty flat overall and 98% of 401ks in the country I'd presume. Everyone gets their share of market returns and losses. People won't talk about losing money so you may feel like you're alone. But people love to boast when they win. People chalk up their wins and forget to post their losses, so it seems like they're always winning when really they aren't. It's human psychology so don't worry about it. Best is pick low fees. Fees are a major drag over decades on a portfolio.
Timing the market actually works and does make you money. Problem is you have to time it right which over the long run doesn't work and hence why timing is a bad strategy. What about all the people who speculated on oil back in January/Feb? Why so silent? Where's the bottom and how do you know exactly where it is? How do you call it? Why did some people call it already 8 months ago? I know we fell but did I land yet? ("Oh but wait, it's a long-term investment/hedge). Purchases for short-term become long-term hedges all of a sudden and that applies to all. Market timing long-term is proven not to work and exploits faults in human psychology. Index/mutual funds remove a lot of risk so you don't put too much money in one stock. Also even big companies fail. Remember AOL? Lucent? S&P top 10, and now? It also avoids getting tied up in emotional market swings which is entertaining to see. "Wahh it went down, why make no sense? (cause you don't have a clue genius), Yay! went up (i'm such a financial wizard, i see all the movements, powerplays, everything, cause I'm a genius), Why did I sell so early instead of later? (cause you don't have a clue genius), Why didn't I sell and cash out and hold before it dropped (cause you don't have a clue genius), etc etc. Purpose in life isn't to play stocks and long-term (w/taxes and trading fees included) it doesn't work.
The crisis in China is like a slow train wreck. I wish it would crash already so we can get this over with. Same thing with the fed increasing interest rate. Do it already. I think if we have a really good employment report this Friday people are going to forget about China. However if it is bad then expect people to panic.
The problem I have is stocks are no longer cheap like they were in 2011. We had an amazing bull run from 2009 til now. We can't keep on going up especially with China slowing down and its affect on Europe and emerging market.
To wagrxm2000's point, remember earlier this year? Seems forever doesn't it? Jobs report was great and stocks plummeted back in February? Reason? Good jobs report meant possible rate hike, sending stocks down. The valuation of stocks was more tied to QE/interest rate rather than jobs. So in a perverse sense, unemployment was good. It's impossible to predict and no sense trying, maybe up, maybe down. Doesn't matter.
I'm down 22% since January 1.
How the f**k is this possible? You mean 2% right? What moves did you make to be -22% in a 401k?