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Gene, I'm 48% cash (money market). But I would still hate to lose 75% of that other 52%. Im too old now, I think, to ever recover from a devastating market drop.

Much depends on why you are investing.

When I get to retirement (I'm not there yet, but maybe 7 years away), I'll have 5 years worth of living/wants expenses in cash. That should be (from a historical perspective) enough to last any major market melt down.

So what do I do with the rest of my money/stock portfolio. I have invested about 2/3 into dividend paying stocks with the goal of having them generate enough dividends to cover my living expenses. So as long as they keep paying and don't cut (could happen again like 2009), I should be ok. Doesn't matter too much if their stock prices go up or down, just keep paying (and hopefully increasing) the dividend.

The remaining 1/3 is for growth/keeping pace with inflation/future wish lists. Yes if they crash it could hurt but I'm not trying to live off them so not as big a deal.

As far as the doom and gloom projections, take them with a grain of salt. Like inflation, so much depends on your individual circumstances. I read and take note but try not to over react.

But I will admit it makes me a little nervous that all the countries (including ours) are printing money and devaluing the currencies.

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