Weigh In: Have You Changed Your Investment Strategy?

No. Haven't changed strategy: 1. Asset allocation: Stocks = 100 - age 2. Own no individual stocks 3. Diversified 4 and 5 star mutual fund with dividends reinvested 4. Ten year ladder of bonds and CDs 5. Preference for bond funds vs individual bonds 6. Investment grade bonds, mostly short term (<5 years), jeld to maturity 7. Keep eye on the horizon...the glass IS half full!

Yes, I've put all my IRAs into a guaranteed 7% return annuity. Then I scaled back my equities a lot and put the rest in bonds. I did this a few months ago...so glad I did!!!

I set a tolerence of 8% drop on my 401K, while averaging 40+% per year in all foriegn equities mutual funds, SE Asia, Latin America, Canada and Emerging Markets each of the last 4 years. Some time in June I moved all my principle to money market accounts and continued buying my chosen mutual funds. When they continued to drop I changed to add my new purchases to money market accounts. My strategy is to watch the market and when I feel it bottoms out and shows positive growth for 30 days or more, start purchasing securities again with my monthly investments. If the growth continues for at least 120 days, I'll start also moving small percentages of my principle monthly into my chosen funds. If you are invested now, I'd leave the principle alone and put new contributions into money market accounts. Then make the change to securities as stated above. If the Dow moved to over 12K I'd slowly begin to sell and move into Money Markets/Bond accounts until a long term positive market trend is determinable.

I moved my entire 401K to money market today. I have got to stop the bleeding. I am 69 years old, have worked since I was 18. I believed in 'of the people, by the people and for the people. A vast majority of Americans did not want this to happen and made Congress fully aware of it. They did it anyway........because the know nothing taxpayers have no clue as what is going on. They are so confident now, they just take the billions with absolutely no regard to the E-mails. And guess what it is still falling. To quote Michele Obama with a twist........"For the first time in my life I am ashamed of our government and ashamed of the taxpayers including me for allowing this to happen. We have certainly now eliminated any trust in the government that we put in office. So we are redistributing the wealth again.....I for some reason am always on the outside of that circle. My stimuli check was $126.00. What happened to the $600. That was such a farce anyway. What does $600.00.....certainly not a months rent or a mortgage payment, maybe a months food or a few tanks of gas. It did not stimulate much. $126.00 and they took 750,000,000,000

I agree with nearly all the opinions except Ron Paul and booting President Bush. He is only 1/3 of the branches of government. He relies on congress to pass the laws and conduct proper oversight. Congress failed as much as the lenders, Fannie, Freddie and the SEC. Barney Frank and Chris Dodd should resign of be voted out! They continued to smear icing on this mud pie! Let alone the collusion of Frank with his affair with someone at Fannie. This should have FULL disclosure! Now as for the CEO's and anyone who made money on this scam. This would include anyone runs a business into failure. Their assests should be seized and returned to the people and this should be used as the first bail out. Thsi should include their salaries along with any bonuses. They were paid to increase the profits not destroy businesses! Steve, Mesa, AZ

No, I'm an investment counselor and have a long term investment strategy and have no reason to change because of a short term down turn. Down markets have always been followed by significant up markets. You don't have a loss until you sell, so why would you sell low? HOWEVER, if Obama is elected I will change everything, since he has vowed to eliminate the Bush tax cuts and if there is any gain by 2010, I will take it and run before that guy destroys the economy.

To Philip Dowling, You need to look at your history. Yes the 9/11 attacks were significant, but the market fully recovered in 58 days. If we get attacked again, the market will recover. On January 9, 2006, the market broke 11,000. In October 2006, the market closed above 12,000. Yep, it sure seems like the markets took a terrible hit after the terrorist attacks. Also in 2007, the Dow Jones actually hit 14,000 points. In nine out of the last 10 largest drops in the market's history, it fully recovered within two years. Saying it won't recover this time is not historical, nor factual, but is speculation based on opinion, emotion, &/or fear. Take your pick. And pulling all your money out and stuffing a mattress (or whatever) with it does not make sense either. If our whole economy collapses, paper currency will be useless.

Good for you Mike. We have not changed our investments at all. We are buying our 401K mutual fund shares "on sale" right now. The market will recover within the next couple of years. Anyone who has taken money out of their 401K has not only lost the money, they have lost the opportunity to recover that money when the market goes up again.

I moved out of stocks for about a month ago. I move moved almost evertything into a government bond index fund. Recently I have purchased oil and gas companies and will continue to do so for the forseeable future. Most of my portfolio will remain in the bond fund.

I feel the answer is NOT to panic, step back at look at the whole picture. Diversify, diversify. I have spread out from the equities market into some RE, FX as well as a program using options that is managed by a real pro. Maybe we have set a record here-maybe not, but we've all seen this before. Believe in our strength and our system which is spread out enough to survive and survive well.

I stopped all funding of my 401(k) and 529 Plans and am putting all extra savings into paying down debt. I figure I'll get a guaranteed 6% return on the first $18k I put away (car loan), then 5% on the next $5k (second car loan) and then 5.625% on the next $180k (home note). I can guarantee that's better than what I'll get in the market over the next year.

I have changed my stategy a little bit. I have broken up my investments to the recommended 25% in each of the categories Dave Ramsey talks about. I left the two I originally had and added 2 more, and gave them each 25%. In one at another place, I switched one of my guaranteed certificate to a 25% instead of the 10% it was in. Then added one more mutual fund as Dave suggested and gave each of the other 3 25% as well. Just balanced out the mix. I am in it for the long haul, and hope my wagon isn't leaking.

About 2 weeks ago, just before the huge drop, we pulled out of mutual funds and moved into commodities, bullion, mining and have a store of food and money that we have been slowing adding to for the last 6 months. You gotta eat, keep the lights on and be able to pay our (always current) mortgage. Our emphasis is on preserving what we have and possibly increasing our net worth.

In early January 2008 I directed all new deposits go into stable value funds. Two weeks ago I sold off 70% of my stock & put $ into stable value. It hurt to make that move but I was fearful it would hurt worse if I let stay in the market. I'm 12 years away from retirement.

I finally gave in and currently have about 60% of my investments in a Stable Value fund until the smoke clears and the market hits some type of bottom.

It’s been a rough couple of weeks for the financial system to say the least. We want to know how you are handling your investements. Have you changed your investment strategy? What sectors do you see as the market’s safe spots? I have tried to insulate myself by transferring my portfolio to a guaranteed fund approach. I am not greedy, nor am I stupid; I leave that for Congress and the "bail-out boys" on Wall Street. The safest spots are the core consumables and ultimately, precious metals. People will always need to eat. As well, we tend to drink more in down turns... so I see a rising demand, albeit marginally, in beer, wine, and liquor. No joke!