I won’t recommend people to panic and run to their retirement accounts and take all of their equity out. With your retirement account, you will never win trading in and out of what is hot and what is dead and should review your investment strategy and objectives twice a year but don’t take money in and out every month or so. The fees exiting in and out of funds will eat away large part of your profits in the long term. Also, not the entire developed world is facing a financial crisis like US so there are still lots of good funds to invest in for long term. Even in US, you can buy companies that make more than 80% of their money from sales outside of US and don’t have huge debts like our automakers.
Invest into cheap blue chip international giants. There are lots of large companies with P/E from 15-20 and moderate growth. You can also invest in large international dividend yielding companies.
