Thought I would post this here as recently a lot of my friends have been wracked by fear amidst some of the worst financial times since the great depression. I have been asked by many on what to do in times like these, and I feel there are more of you out there. Hope this helps.

If you have been investing for retirement through your 401ks, 403bs etc and IRA accts, and are well diversified across all components of the market, please do not change course. The key word here is if you were 'well diversified' to begin with. Also, chasing equity based securities (mutual funds, ETFs to name a few) is not enough diversification, so please make sure to add non equity exposure as well-- more so if you are already in your 40s. Remember, this is long term investing. Just make sure you rebalance your portfolio over time to prevent a 'bubble' buildup.

If you have been investing for the short term, lets hope you did not purchase anything that was  equity based over the past 12 months in hopes of a quick profit. If you did, do not make the mistake of selling it now and realize your losses. Of course, there are always exceptions to the rule (we now call them the 'lehmans' of the world) where you should cut your losses and get out for the most part.

And finally, if you have money sitting in cash at the moment and have no short term needs for it, you could not have asked for a better time to jump start your retirement savings--talk about a unexpected Dashain gift! Everything is trading at a discount right now. Consider investing that in a well diversified portfolio. As always do your due diligence.

I would ask some one like Emini trader (where are you?) to start a thread that discusses investment opportunities in times like these. I am not as well versed in daily market gyrations as he is, but I promise to be a contributor as well. I hope all our Nepalese brethren emerge as winners in this latest 'fire sale' that is gripping the street!

Dragonfly,
"If you have been investing for retirement through your 401ks, 403bs etc and IRA accts, and are well diversified across all components of the market, please do not change course. The key word here is if you were 'well diversified' to begin with. Also, chasing equity based securities (mutual funds, ETFs to name a few) is not enough diversification"
For someone like me who does NOT know the intricacies, how do we know whether it is well diversified. I'm almost like "0" with knowledge of retirement and 401k. I remember when I was setting up my 401k, there were some options to choose from a list of companies, check boxes and percentages,.Honestly I was lost, filled it out with "Eeni Minny minny moe" . Dumb..Yes. But it is not my field.
Now looking at the economy, it is a common sense, if I'm going to loose all of it because some company F!!ked it up, why not pull it now and convert into cast, no matter what the penalty, at least I'll be getting something.
It would be nice if somebody can explain in plain English about the general tips on 401k. Give an example on what to expect and which options to choose and what it means. I know you guys probably get paid to do those on regular basis on your jobs, it would be nice to help out our fellow Nepali who are not into stock and market.
Thanks

rewire, does not matter if this is not your field, if you feel your knowledge on this is at a beginner's level, I recommend reading books that help individuals like you. I could post something to break it down but I am not that great at explaining and honestly I do not have time for that (like you said, we get paid to do this--hence we have to focus on that first). There are many good books on investing for beginners, and maybe our fellow sajhaites can add to this thread to suggest what helped when they were beginners as well.

When it comes to your money, you should make it your business. Just like you should make your health your business and take care of your body evem though a physician may not be your profession.

before you pull all your money out, I highly recommend learning more about the pros and cons before pulling the trigger. Good Luck!