Anyone with an ounce of brains was out of the market 2,500 points ago. The problem is those that have 401K that cannot get out. The brokers are making money trading these down and people are losing them - most of the employees where I work have asked to close their 401K and move to IRA’s but they have been rejected due to not meeting the requirements.
I took some money out at the end of last year, but I didn't want to liquidate all my class A preferred. It is taking a bit of beating, but is still fairly valuable. The 401K is wrapped up in a lot of elements that I can't change or liquidate. It's getting hammered too. The mere fact that my company offers a "qualified" plan excludes me from making pre-tax IRA contributions. When the taxes make a sudden jump, there won't be money left to invest.