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You seem to have some market savvy. My 401K is heavily into global stocks, about a 70-30 mix.

Should I re-balance at this time for more domestic stuff? Or just ride it out...?

Thanks to my Freeper friends

Ride it out if you are not close (5 yrs or more) from retirement. I'm doing the same. Once I was convinced (mid Jult) that the sub-prime was going to blow like we are seeing, I moved 25% (one 401K fund) from a fund that was 25% vested in financials into a bond fund in attempts to preserve some capital, which it did. through the end of 2007. Late, but, the time was for me to that in March, '07.

I'm riding it out with 25% overseas still, 50% domestic stocks, and 25% bonds with 15 yrs till retirement. We just don't have as many options as I'd like in out 401K choices. I figure it'll 4 years to see real growth again overseas and would be very pleased to see a complete recovery by the end of '08 for the domestics.

Don't make decisions for yourself on what I think, listen to several sources and do your homework. Buying medium NAV's and selling low is a guaranteed loss every time. Wish out 401K had more real estate exposure. A good move to buy low soon in the summer or 18 months out.....just my take.

“Should I re-balance at this time for more domestic stuff? Or just ride it out...?”

Depends on how old you are.

If you are decades from retirement or even a decade, pick good stocks and maximize your 401k and IRAs over the long run. Good US and foreign indexes like SPY, MDY will do well over the long run.

Finally my two sons, both 40 something, realize that recessions are good for their investments in their 401K’s and IRAs. They get to buy low and will ride through several cycles before retirement.

You seem to have some market savvy. My 401K is heavily into global stocks, about a 70-30 mix.

Should I re-balance at this time for more domestic stuff? Or just ride it out...?

I have a moderate allocation, which Schwab defines as 35% Large Cap Equity, 10% Small Cap Equity, 15% International, 35% Fixed Income, 5% Cash or Equivalent. (Sorry for the caps, but I copied it from their site). So far, the DOW has lost about 16% from its peak of ~14,300. My portfolio has lost ~5.5% from my peak. Of course, I'd like to have lost less, but since retirement is a decade or two out, I'll ride it out.

Now might be a good time to start buying in, slowly - using dollar cost averaging in case we fall even futher this year.