As famously immortalized in the book The Hitchhiker’s Guide to the Galaxy, the phrase “Don’t Panic” is very useful these days.
My 401K was down over 19% when I looked at it this morning. However, after I finished gasping for air and mentally screaming I smacked some sense into myself. At my age, I am a long term investor and I’m committed to returns over time, not just this week. The New York Times has an interesting article that highlights some of that viewpoint:
http://www.nytimes.com/2008/10/09/business/yourmoney/09money.html?partner=permalink&exprod=permalink
Despite daily and yearly fluctuations, if you look at the trend for the US stockmarket over the past 100 years, it trends up. This information was presented in a chart in my finance textbook. I’ll post it if I have time to dig out the source. So basically, sit back, enjoy the ride, and in the short term Don’t Panic.