Diversify and hedge. Name of the game. People I work with have seen their 401K's eviscerated. Mine is more or less OK, because it is "heavily weighted" into money markets, which are safer than equity markets. The "rule of thumb" for people in their 20's and 30's is to have 70% of the 401K in equity markets. I didn't follow that, and instead reduced my position in equities and increased my position in money markets, when it came to my own 401K. Now I am more or less OK while my collegues are scrambling to sell.