I did the same thing as Raybyrnes, I moved the majority of my 401K into cash and bond funds to lock in gains. My asset allocation is going right back into the market S&P type index funds, energy and natural resources, company stock and International. I played the SDS last year and got my hat handed to me, bucked up and went back in Dec, glad I did I guess I was year too early last year.

What are people’s thoughts on a big scale capitulation in the near future. IMO if one were to happen it would be triggered by the current turmoil in the monolines. MBI and ABK are basically being priced for BK (why didn’t I get those puts??). This counterparty risk thing is pretty significant. My gut is telling me we haven’t seen the real fireworks here.