just remember that the deeper a market dips, the safer it is to get in. it isn't just a cheesy slogan. we don't know how low the market will go on any given dip, but the people that increase their wealth usually do pretty well in down markets. they buy all the way down secure in the knowledge that the economy is a cycle and it will come back up and they will have purchased more shares at a lower cost and have reaped the rewards that the individual who pulled out missed.
"in a recession dis-investors lose, investors win" Mr Buffett
he was interviewed a few years ago, but i can't find a link to the article. the interviewer asked him how he could remain so unshakeable knowing Buffett had just lost $6million on one holding. Buffett calmly responded that he hadn't lost one penny. you only lose if you sell.
Russotto - like i said, the market isn't the tool for wealth creation. it is an excellent path to wealth accumulation, though.
i don't know what funds you have, but i generally don't recommend index funds. a well managed fund will outperform an index fund.
i only maintain my license in a couple of states so i can't give you specific recommendations but i would suggest that you visit:
Lord Abbett
American Funds
Van Kampen
you can build a very nice portfolio in any one of the families or an exceptional one by mixing certain funds from the three.